Tassietiger Corporation had the following information for 2017:
$$\begin{array} { l r }
\text { Revenue } & \$ 900000 \
\text { Operating expenses } & 670000 \
\text { Total assets } & 1150000
\end{array}$$
What is the return on investment?
A)10%
B)20%
C)25%
D)78.2%

Question

Tassietiger Corporation had the following information for 2017:
$$\begin{array} { l r } 
\text { Revenue } & \$ 900000 \
\text { Operating expenses } & 670000 \
\text { Total assets } & 1150000
\end{array}$$
What is the return on investment?
A)10%
B)20%
C)25%
D)78.2%

Quizplus · Accepted Answer

Return on Investment (ROI) is calculated as (Net Income / Total Assets) * 100. Net Income is Revenue - Operating Expenses = $900,000 - $670,000 = $230,000. ROI = ($230,000 / $1,150,000) * 100 = 20%.