Westerville Services Company, a division of a golf holding company, provides var
ID: 2507892 • Letter: W
Question
Westerville Services Company, a division of a golf holding company,provides various services to operators of golf courses in Columbus,
Ohio. Financial information concerning the most recent year appears below:
Sales $10,000,000
Net operating income $3,000,000
Average operating assets $20,000,000
Ignore the impact of income taxes in your calculation.
Compute the return on investment (ROI) for Westerville Services Company.
Westerville Services Company, a division of a golf holding company,
provides various services to operators of golf courses in Columbus,
Ohio. Financial information concerning the most recent year appears below:
Sales $10,000,000
Net operating income $3,000,000
Average operating assets $20,000,000
Ignore the impact of income taxes in your calculation.
Compute the return on investment (ROI) for Westerville Services Company.
Explanation / Answer
Return on Investment = Net Income/ Total Assets = $3,000,000 /$20,000,000 = 0.15 = 15%