Falcon Corp.'s balance sheet indicates that the company has $500,000 invested in operating assets. During 2021, Falcon earned operating income of $60,000 on $800,000 of sales. Compute Falcon's return on investment for 2021. A. 8.5% B. 10.0% C. 12.0% D. 15.0%

Falcon Corp.'s balance sheet indicates that the company has $500,000 invested in operating assets. During 2021, Falcon earned operating income of $60,000 on $800,000 of sales. Compute Falcon's return on investment for 2021. A. 8.5% B. 10.0% C. 12.0% D. 15.0%

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter3: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 19SP

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Question

I am trying to find the accurate solution to this financial accounting problem with appropriate explanations.

Falcon Corp.'s balance sheet indicates that the company
has $500,000 invested in operating assets. During 2021,
Falcon earned operating income of $60,000 on
$800,000 of sales. Compute Falcon's return on
investment for 2021.
A. 8.5%
B. 10.0%
C. 12.0%
D. 15.0%

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