Reference: 12-10
Harstin Corporation Has Provided the Following Data -Emiley Inc

question 30

Multiple Choice

Reference: 12-10
Harstin Corporation has provided the following data: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 625,000 \\\hline \text { Gross margin } & 70,000 \\\hline \text { Net operating income } & 50,000 \\\hline \text { Stockholders' equity } & 90,000 \\\hline \text { Average operating assets } & 250,000 \\\hline \text { Residual income } & 20,000 \\\hline\end{array}$$
-Emiley Inc., newly incorporated on January 2, earned $100,000 in net operating income in its first year of operations which ended December 31. Operating assets, which increased evenly throughout the year, totalled $200,000 at year end. ROI for the year was?

• A)0%.
• B)50%.
• C)200%.
• D)100%.

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Definitions:

LLPs

Limited Liability Partnerships, a form of business organization where partners have limited liabilities and it protects each partner from debts against the partnership arising from professional malpractice lawsuits.

Certificate of Authenticity

A document or seal that verifies the authenticity of an item or artwork, usually by the creator or issuing authority.

Foreign LLPs

Limited liability partnerships established in one jurisdiction but registered to do business in another jurisdiction, often with different legal implications.

Distribution

The process of delivering or spreading goods, services, or financial assets from a central point to multiple recipients or locations.