Anguiano Inc.reported the following results from last year's operations:
The company's average operating assets were $5,000,000.
Last year's return on investment (ROI)was closest to:
A) 7.0%
B) 14.7%
C) 45.8%
D) 47.6%

Question

Anguiano Inc.reported the following results from last year's operations:
 The company's average operating assets were $5,000,000.
Last year's return on investment (ROI)was closest to:
A) 7.0% 
B) 14.7% 
C) 45.8% 
D) 47.6%

Quizplus · Accepted Answer

ROI = Net operating income ÷ Average operating assets = $735,000 ÷ $5,000,000 = 14.7%