The following information is available for the Bumbling Company: $$\begin{array} { l r }
\text { Sales } & \$ 250,000 \
\text { Invested capital } & 156,250 \
\text { ROI } & 20 \%
\end{array}$$ The net income is _____.
A)$93,750
B)$156,250
C)$31,250
D)$50,000

Question

The following information is available for the Bumbling Company: $$\begin{array} { l r } 
\text { Sales } & \$ 250,000 \
\text { Invested capital } & 156,250 \
\text { ROI } & 20 \%
\end{array}$$ The net income is _____.
A)$93,750
B)$156,250
C)$31,250
D)$50,000

Quizplus · Accepted Answer

ROI (Return on Investment) is calculated as Net Income / Invested Capital. Given ROI is 20%, and Invested Capital is $156,250, Net Income = 0.20 * $156,250 = $31,250.

The Following Information Is Available for the Bumbling Company Sales $250,000 Invested capital 156,250 ROI 20%\begin{array} { l r } \text { Sales } & \$ 250,000 \\\text { Invested capital } & 156,250 \\\text { ROI } & 20 \%\end{array} Sales Invested capital ROI ​$250,000156,25020%​

The Following Information Is Available for the Bumbling Company $\begin{array} { l r } \text { Sales } & \$ 250,000 \\\text { Invested capital } & 156,250 \\\text { ROI } & 20 \%\end{array}$