The Midwest segment of a company had a segment return on assets of 13%.If the revenues and operating income of this segment were $4 million and $1 million,respectively,what is the segment's average total assets amount?
A)$130,000
B)$52,000
C)$30,769,230
D)$7,692,308
E)$23,076,923

Question

Quizplus · Accepted Answer

Return on assets (ROA) = Operating Income / Average Total Assets
13% = 1,000,000 / Average Total Assets
Average Total Assets = 1,000,000 / 0.13
Average Total Assets = $7,692,308

The Midwest Segment of a Company Had a Segment Return