Last year sales were $300,000, net operating income was $75,000, and averageoperating assets were $500,000. If sales next year remain the same as last year andexpenses and average operating assets are reduced by 5%, what will be the return oninvestment next year?a. 12.2%b. 18.2%c. 20.2%d. 25.2%
Last year sales were $300,000, net operating income was $75,000, and averageoperating assets were $500,000. If sales next year remain the same as last year andexpenses and average operating assets are reduced by 5%, what will be the return oninvestment next year?a. 12.2%b. 18.2%c. 20.2%d. 25.2%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Last year sales were $300,000, net operating income was $75,000, and average
operating assets were $500,000. If sales next year remain the same as last year and
expenses and average operating assets are reduced by 5%, what will be the return on
investment next year?
a. 12.2%
b. 18.2%
c. 20.2%
d. 25.2%
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