The top management at Groundsource Company,a manufacturer of lawn and garden equipment,is attempting to recover from a fire that destroyed some of their accounting records.The main computer system was also severely damaged.The following information was salvaged:

What is the value of the operating assets belonging to the Tiller Division?
A)$10,000,000
B)$15,384,615
C)$9,523,810
D)$260,000

Question

The top management at Groundsource Company,a manufacturer of lawn and garden equipment,is attempting to recover from a fire that destroyed some of their accounting records.The main computer system was also severely damaged.The following information was salvaged:

What is the value of the operating assets belonging to the Tiller Division?

What is the value of the operating assets belonging to the Tiller Division?
A)$10,000,000 
B)$15,384,615 
C)$9,523,810 
D)$260,000

Quizplus · Accepted Answer

ROI = Net Income / Assets
Assets = Net Income / ROI
Assets = $2,000,000 / 0.21 = $9,523,810

The Top Management at Groundsource Company,a Manufacturer of Lawn and Garden