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

Algebra ->  Finance -> 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      Log On


   

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) About Me  (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
:
x=375000%28.12%29=highlight%2845000%29