Company A Company B Company C Sales $2,448,000 $1,665,000 Net operating income $318,240 $266,400 Average operating assets $1,530,000 $2,550,000 Margin 13 % 16 % 4 % Turnover 1.60 2.10 Return on investment (ROI) 0.21 % 8.00 % %

Company A Company B Company C Sales $2,448,000 $1,665,000 Net operating income $318,240 $266,400 Average operating assets $1,530,000 $2,550,000 Margin 13 % 16 % 4 % Turnover 1.60 2.10 Return on investment (ROI) 0.21 % 8.00 % %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

	Company A	Company B	Company C
Sales	$2,448,000		$1,665,000
Net operating income	$318,240		$266,400
Average operating assets	$1,530,000				$2,550,000
Margin	13	%	16	%	4	%
Turnover	1.60				2.10
Return on investment (ROI)	0.21	%	8.00	%		%

Formula Formula ROI (%) = Net Income Principal Amount × 100

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