A company had the following results last year: sales,$700,000; return on investment,28%; and margin,8%.What were the average operating assets last year?
A) $200,000.
B) $540,000.
C) $2,450,000.
D) $2,500,000.

Question

Quizplus · Accepted Answer

The average operating assets can be calculated using the formula: Average Operating Assets = Sales / (Return on Investment / Margin). Plugging in the given values: $700,000 / (28% / 8%) = $200,000.

A Company Had the Following Results Last Year: Sales,$700,000; Return