Zygot IncHad $650,000 Invested in Assets, Sales of $1,250,000, Operating Income

question 119

Multiple Choice

Zygot Inc.had $650,000 invested in assets, sales of $1,250,000, operating income amounting to $140,000, and a minimum acceptable rate of return of 12% on its invested assets.The rate of return on investment for Zygot is:

• A) 16.2%.
• B) 21.5%.
• C) 14.5%.
• D) 25.0%.

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Definitions:

Issued

Refers to securities or other financial instruments that have been created and offered for sale to investors.

Journal Entry

A record in accounting that consists of debits and credits to various accounts, used to document business transactions in the financial records.

Premium on Bonds Payable

The excess amount by which a bond is sold over its face value.

Financial Statements

Documents that provide an overview of a company's financial condition in both short and long term, including balance sheet, income statement, and cash flow statement.