New Age Designs located in Indianapolis, Indiana reported the following financia
ID: 2564700 • Letter: N
Question
New Age Designs located in Indianapolis, Indiana reported the following financial data. Profit margin is 20%. Sales are $403,000, net operating income is $80,600, and average operating assets are $128,000. What is the company's return on investment (ROI)?
20.0%
63.0%
3.2
0.3
New Age Designs located in Indianapolis, Indiana reported the following financial data. Profit margin is 20%. Sales are $403,000, net operating income is $80,600, and average operating assets are $128,000. What is the company's return on investment (ROI)?
Explanation / Answer
ROI=Net operating income/average operating assets
=(80600/128000)
=63%(Approx)(B).