The top management at Groundsource Company,a manufacturer of lawn and garden equipment,is attempting to recover from a fire that destroyed some of their accounting records.The main computer system was also severely damaged.The following information was salvaged:

What is the value of the operating assets belonging to the Tractor Division?
A)$15,000,000
B)$2,179,487
C)$13,300,000
D)$7,727,273

Question

The top management at Groundsource Company,a manufacturer of lawn and garden equipment,is attempting to recover from a fire that destroyed some of their accounting records.The main computer system was also severely damaged.The following information was salvaged:

What is the value of the operating assets belonging to the Tractor Division?

What is the value of the operating assets belonging to the Tractor Division?
A)$15,000,000 
B)$2,179,487 
C)$13,300,000 
D)$7,727,273

Quizplus · Accepted Answer

ROI = Net Income / Assets
Assets = Net Income / ROI
Assets = $1,700,000 / 0.22 = $7,727,273

The Top Management at Groundsource Company,a Manufacturer of Lawn and Garden