Condor Company provided the following information for last year:
$$\begin{array} { l l }
\text { Operating income } & \$ 60,000 \
\text { Sales } & \$ 240,000 \
\text { Beginning operating assets } & \$ 440,000 \
\text { Ending operating assets } & \$ 450,000
\end{array}$$
-Refer to the Figure.What was Condor's return on investment last year?
A)0.10
B)0.13
C)0.32
D)0.50

Question

Condor Company provided the following information for last year:
 $$\begin{array} { l l } 
\text { Operating income } & \$ 60,000 \
\text { Sales } & \$ 240,000 \
\text { Beginning operating assets } & \$ 440,000 \
\text { Ending operating assets } & \$ 450,000
\end{array}$$
-Refer to the Figure.What was Condor's return on investment last year?
A)0.10
B)0.13
C)0.32
D)0.50

Quizplus · Accepted Answer

Return on Investment (ROI) is calculated as Operating Income divided by Average Operating Assets. Average Operating Assets = (Beginning Operating Assets + Ending Operating Assets) / 2 = ($440,000 + $450,000) / 2 = $445,000. ROI = $60,000 / $445,000 = 0.1348, approximately 0.13.

Condor Company Provided the Following Information for Last Year -Refer to the Figure