Astute Intel,a data prospecting company,is compiling data from 2011 and 2012 to compare to the company's 2012 performance in order to assess the best company directives for 2013.The operating income of the company in 2011 was $480,000,but new streamlined practices in 2012 resulted in $360,000 in operating income.In 2011 the gross book value of total assets was $1,840,000 and the accumulated depreciation of total assets was $400,000.In 2012 the gross book value of total assets was $1,930,000,while the accumulated depreciation for that year was $130,000.
Required
Compute the 2011 and 2012 ROI using the net book value of total assets.
A)15.8%;22.0%
B)33.3%;20.0%
C)18.9%;10.5%
D)10.2%;19.9%
E)5.7%;15.1%

Question

Quizplus · Accepted Answer

B)2011: $480,000 = 0.333 or 33.3%
($1,840,000 - $400,000)
2012: $360,000 = 0.2 or 20%
($1,930,000 - $130,000)

Astute Intel,a Data Prospecting Company,is Compiling Data from 2011 and 2012