The Martin Company reported net income of $15,000 on gross sales of $80,000.The company has average total assets of $135,000,of which $102,000 is property,plant and equipment.What is the company's return on investment (rounded to the nearest decimal point)?
A) 18.8%
B) 11.1%
C) 14.7%
D) 12.5%

Question

Quizplus · Accepted Answer

Return on investment = Net income ÷ Average total assets
Return on investment = $15,000 ÷ $135,000 = 11.1%

The Martin Company Reported Net Income of $15,000 on Gross