Chavin Company had the following results during August: net operating income,$220,000; turnover,5; and ROI 25%.Chavin Company's average operating assets were:
A) $880,000
B) $44,000
C) $55,000
D) $1,100,000

Question

Quizplus · Accepted Answer

ROI = Net operating income ÷ Average operating assets
25% = $220,000 ÷ Average operating assets
Average operating assets = $220,000 ÷ 25% = $880,000

Chavin Company Had the Following Results During August: Net Operating