Answer:
The company's net operating income for the year was: $60,000
Explanation:
Return on investment (ROI) is calculated by using following formula:
ROI = Net income/Total investment
Net Income = ROI x Total investment
Investment Turnover Ratio = Net Sales/(Stockholders' Equity + Debt)
or
Investment Turnover Ratio = Net Sales/Total investment
Total investment = Net Sales/Investment Turnover Ratio
The company had sales of $400,000, a turnover of 2.4, and a return on investment of 36%.
Net Income = ROI x Total investment = ROI x Net Sales/Investment Turnover Ratio = 36% x $400,000/2.4 = $60,000