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 Tiller Division?
A) $10,000,000
B) $ 12,000,000
C) $ 14,400,000
D) $ 15,000,000
E) $ 16,000,000

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 Tiller Division?
A) $10,000,000 
B) $ 12,000,000 
C) $ 14,400,000 
D) $ 15,000,000 
E) $ 16,000,000

Quizplus · Accepted Answer

ROI = Net Income/Assets
Assets = Net Income/ROI
Assets = $1,440,000/0.10 = $14,400,000

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