SOLUTION: Can someone please help with this problem: A company reported teh following information for 2007: Sales = $787,000 Average Operating Assets = $375,000 Desired ROI = 12% Resi

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Question 174524: Can someone please help with this problem:
A company reported teh following information for 2007:
Sales = $787,000
Average Operating Assets = $375,000
Desired ROI = 12%
Residual Income = $11,250
The company's operatin income for 2007 was:
a. $94,440
b. $33,750
c. $45,000
d. $56,250

Answer by Mathtut(3670)   (Show Source): You can put this solution on YOUR website!
the answer would be c.
:
ROI=net operating income/avg operating assets
:
.12=x/375000
:

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