Augustus Electrical Company has 2 divisions, one in Georgetown and one in Berbice Guyana  and information on the both divisions are as follows:                                          Georgetown                            Berbice  Total assets                    $100,000                              $500,000 Current liabilities              25,000                                150,000 Revenue                             50,000                               50,000 Income before tax             20,000                                75,000 Required:  Calculate the return on investment (ROI) using net income and total assets as the measure of income and investment for the Berbice division. a.150%  b.1.5% c.15% d.20%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Augustus Electrical Company has 2 divisions, one in Georgetown and one in Berbice Guyana  and information on the both divisions are as follows: 

                                        Georgetown                            Berbice 

Total assets                    $100,000                              $500,000

Current liabilities              25,000                                150,000

Revenue                             50,000                               50,000

Income before tax             20,000                                75,000

Required: 

Calculate the return on investment (ROI) using net income and total assets as the measure of income and investment for the Berbice division.

a.150% 
b.1.5%
c.15%
d.20%
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