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Pachacha [2.7K]
3 years ago
7

Atlas Company provided the following information for last year: Operating income $ 92,000 Sales 235,000 Beginning operating asse

ts 410,000 Ending operating assets 440,000 Which of the following is Atlas's return on investment (ROI) for last year? (Note: Round answer to two decimal places.) a. 0.41 b. 0.50 c. 0.32 d. 0.22 e. 0.15
Business
1 answer:
STALIN [3.7K]3 years ago
8 0

Answer: 0.22

Explanation: Return on total assets is calculated by dividing net income or operating income from average total assets. It is a profitability ratio which is used by analysts to evaluate the ability of the firm to generate revenue from the given level of assets it have.

=\:\frac{operating\:income}{Average\:total\:assets}

where,

Average\:total\:assets=\frac{410,000+\:440,000}{2}

= $425,000

Now,putting the values into equation :-

=\:\frac{92,000}{425,000}

= 0.22

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