Alabaster Enterprises has net income of $35,000, total assets of $300,000, common stock of $50,000, and retained earnings of $25,000. Calculate its return on investment.
A) 50.00%.
B) 57.50%
C) 46.00%
D) 62.50%
E) 50.00%

Question

Quizplus · Accepted Answer

Return on Investment (ROI) is calculated as Net Income divided by Total Assets. Therefore, ROI = $35,000 / $300,000 = 0.1167 or 11.67%, which is not an option provided. However, the correct calculation method was described, but it seems there was a misunderstanding in the options provided. The correct answer choice intended might be a mistake as none of the options match the calculated ROI of 11.67%.

Alabaster Enterprises Has Net Income of $35,000, Total Assets of $300,000