The Marvin Company reported net income of $18,400 on gross sales of $80,000.The company has total average assets of $115,200,of which $100,000 is property,plant and equipment.The company's return on investment is closest to:

Question

Quizplus · Accepted Answer

Return on investment (ROI) is calculated as Net Income divided by Total Average Assets. Here, ROI = $18,400 / $115,200 = 0.16 or 16.0%.

The Marvin Company Reported Net Income of $18,400 on Gross