Problem regarding return on investment

Reference no: EM13134373

ABC Company reported net income of $24,000 on gross sales of $110,000. The company has total assets of $215,000, of which $120,000 is property, plant, and equipment. What is the company's return on investment?

Does return on investment include all assets? Is the info on gross sales needed or just extra information? I think the answer is ROI = net sales / avg. total assets = $24,400/$215,200 = .1134 = 11%. Is my logic correct?

Reference no: EM13134373

Questions Cloud

Define the ester ethyl p-nitrobenzoate is more reactive : The ester ethyl p-nitrobenzoate is more reactive towards nucleophilic acyl substitution than ethyl p-methyoxybenzoate.

What type and amount of gain should hart : No gift tax was paid. Hart, Jr. sold the 25% partnership interest for $85,000 on December 17 of this year. What type and amount of gain should Hart, Jr. report on his current-year tax return?

Which was still within the relevant range average total : When activity jumped to 25,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $30.40.

Research paper on holocaust rescuers with bibliography : Research paper on Holocaust rescuers with Bibliography.

Problem regarding return on investment : ABC Company reported net income of $24,000 on gross sales of $110,000. The company has total assets of $215,000, of which $120,000 is property, plant, and equipment. What is the company's return on investment?

Define ethyl acetate can be prepared from ethanol : Ethyl acetate can be prepared from ethanol as the only organic starting material.

Find probability that bill will pass using probability tree : Thirty-five percent of the Democrats and 70% of the Republicans favor the bill. The bill needs a simple majority to pass. Using a probability tree, determine the probability that the bill will pass.

Calculate the enthalpy change : A coffee-cup calorimeter is calibrated by adding 1840 J of heat to the water in the calorimeter and measuring a 1.72C rise in temperature.

Euclidean-non-euclidean geometry : Discuss differences between neutral geometry and Euclidean geometry. Explain the importance of Euclid's parallel postulate and how this was important to the development of hyperbolic and spherical geometries.

User Account

All Pages