The Monticello Company reported net income of $14,400 on gross sales of $80,000. The company has total average assets of $115,200, of which $100,000 is property, plant and equipment. What is the company's return on investment?
A)69.4%
B)18.0%
C)14.5%
D)12.5%

Question

Quizplus · Accepted Answer

The Return on investment ratio is: net income/average assets. $14,400/115,200 = .125.

The Monticello Company Reported Net Income of $14,400 on Gross