Soto Corporation's balance sheet indicates that the company has $300,000 invested in operating assets. During 2011, Soto earned operating income of $48,000 on $600,000 of sales. Compute Soto's return on investment for 2011.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 1P
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Soto Corporation's balance sheet indicates that the
company has $300,000 invested in operating assets.
During 2011, Soto earned operating income of $48,000
on $600,000 of sales.
Compute Soto's return on investment for 2011.
Transcribed Image Text:Soto Corporation's balance sheet indicates that the company has $300,000 invested in operating assets. During 2011, Soto earned operating income of $48,000 on $600,000 of sales. Compute Soto's return on investment for 2011.
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