Atlas Company provided the following information for last year:

- Which of the following is Atlas's return on investment (ROI) for last year? (Note: Round answer to two decimal places.)

A) 0.41
B) 0.22
C) 0.32
D) 0.50
E) 0.15

Question

Atlas Company provided the following information for last year:

- Which of the following is Atlas's return on investment (ROI) for last year? (Note: Round answer to two decimal places.)
 
A) 0.41 
B) 0.22 
C) 0.32 
D) 0.50 
E) 0.15

Quizplus · Accepted Answer

ROI = Operating income / Average Operating Assets
ROI = Operating income / [(Beginning operating assets + Ending operating assets) / 2]
ROI = $92,000 / [($410,000 + $440,000) / 2] = 0.22

Atlas Company Provided the Following Information for Last Year