Step Up Ladders Company provides the following financial information: Income from operations$400,000Interest expense46,000Gains/(losses) on sale of equipment2,700Net income351,300Total assets at Jan. 12,800,000Total assets at Dec .313,200,000 Calculate return on investment based on the information given above. (Round your answer to two decimal places.) A.11.71% B.13.33% C.12.5% D.14.29%

The return on investment is calculated as income from operations divided by average total assets.

Answered: Step Up Ladders Company provides the…

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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Step Up Ladders Company provides the following financial information:

Income from operations	$400,000
Interest expense	46,000
Gains/(losses) on sale of equipment	2,700
Net income	351,300
Total assets at Jan. 1	2,800,000
Total assets at Dec .31	3,200,000

Calculate return on investment based on the information given above. (Round your answer to two decimal places.)

11.71%

13.33%

12.5%

14.29%

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