Use the information below to answer the following question(s).
The top management at Groundsource Company, a manufacturer of lawn and garden equipment, is attempting to recover from a flood, which destroyed some of its accounting records. The main computer system was also severely damaged. The following information was salvaged:

-What is the value of the total assets belonging to the Tractor Division?
A) $ 3,500,000
B) $4,000,000
C) $4,500,000
D) $5,000,000
E) $2,000,000

Question

Use the information below to answer the following question(s).
The top management at Groundsource Company, a manufacturer of lawn and garden equipment, is attempting to recover from a flood, which destroyed some of its accounting records. The main computer system was also severely damaged. The following information was salvaged:
 
-What is the value of the total assets belonging to the Tractor Division?
A) $ 3,500,000 
B) $4,000,000 
C) $4,500,000 
D) $5,000,000 
E) $2,000,000

Quizplus · Accepted Answer

ROI = Net Income/Assets
Assets = net Income/ROI
Assets = $1,000,000/0.20 = $5,000,000

Use the Information Below to Answer the Following Question(s)