The following information is available for the Super Company: $$\begin{array} { l r }
\text { Sales } & \$ 1,000,000 \
\text { Invested capital } & 312,500 \
\text { ROI } & 20 \%
\end{array}$$ The net income is _____.
A)$687,500
B)$312,500
C)$62,500
D)$100,000

Question

The following information is available for the Super Company: $$\begin{array} { l r } 
\text { Sales } & \$ 1,000,000 \
\text { Invested capital } & 312,500 \
\text { ROI } & 20 \%
\end{array}$$ The net income is _____.
A)$687,500
B)$312,500
C)$62,500
D)$100,000

Quizplus · Accepted Answer

The net income can be calculated using the ROI formula: ROI = Net Income / Invested Capital. Given an ROI of 20%, we can rearrange the formula to find Net Income = ROI * Invested Capital = 20% * $312,500 = $62,500.

The Following Information Is Available for the Super Company Sales $1,000,000 Invested capital 312,500 ROI 20%\begin{array} { l r } \text { Sales } & \$ 1,000,000 \\\text { Invested capital } & 312,500 \\\text { ROI } & 20 \%\end{array} Sales Invested capital ROI ​$1,000,000312,50020%​

The Following Information Is Available for the Super Company $\begin{array} { l r } \text { Sales } & \$ 1,000,000 \\\text { Invested capital } & 312,500 \\\text { ROI } & 20 \%\end{array}$