Calculate the return on investment (ROI)from the information given below. Net Income = $18,000; Advertising Expenses = $220,000; Total Liabilities = $120,000; Total Assets = $160,000; Gross Margin = $80,000; Taxes Paid = $2,000
A) 16.67 percent
B) 15 percent
C) 11.25 percent
D) 12.5 percent
E) 50 percent

Question

Quizplus · Accepted Answer

ROI = Net profit before taxes + Taxes paid/Total assets = ($18,000 + $2,000)/$160,000 = .125 = 12.5 percent.Refer: Table 8.1

Calculate the Return on Investment (ROI)from the Information Given Below