Provisions Company, a manufacturer of office supplies, provides the following financial information: Pen DivisionPencil DivisionOperating income$100,000$40,000Net sales$500,000$150,000Total assets at Jan. 1$580,000$350,000Total assets at Dec. 31$610,000$300,000 Calculate the return on investment for the Pen Division. (Round your answer to two decimal places.) Provisions Company, a manufacturer of office supplies, provides the following financial information:Pen DivisionPencil DivisionOperating income$100,000$40,000Net sales$500,000$150,000Total assets at Jan. 1$580,000$610,000$350,000$300,000Total assets at Dec. 31Calculate the return on investment for the Pen Division. (Round your answer to two decimal places.)O A. 17.24%O B. 16.81%O C. 12.31%O D. 16.39%

Return on investment is a percentage of net income with respect to its investment. It is a prominent…

Answered: Provisions Company, a manufacturer of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Provisions Company, a manufacturer of office supplies, provides the following financial information:

	Pen Division	Pencil Division
Operating income	$100,000	$40,000
Net sales	$500,000	$150,000
Total assets at Jan. 1	$580,000	$350,000
Total assets at Dec. 31	$610,000	$300,000

Calculate the return on investment for the Pen Division. (Round your answer to two decimal places.)

Provisions Company, a manufacturer of office supplies, provides the following financial information:
Pen Division
Pencil Division
Operating income
$100,000
$40,000
Net sales
$500,000
$150,000
Total assets at Jan. 1
$580,000
$610,000
$350,000
$300,000
Total assets at Dec. 31
Calculate the return on investment for the Pen Division. (Round your answer to two decimal places.)
O A. 17.24%
O B. 16.81%
O C. 12.31%
O D. 16.39%

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