South Division of Renato Enterprises Reported Net Income of $480,000

question 128

Multiple Choice

South Division of Renato Enterprises reported net income of $480,000 in March on sales of $7,900,000.If this division has no interest expense, an income tax rate of 30 percent, and reported a return on investment of 12 percent, how much is invested capital?

• A)$948,000
• B)$4,000,000
• C)$2,800,000
• D)More information is needed to determine the answer.

---

Definitions:

Diamond

A precious gemstone made of crystallized carbon, known for its extreme hardness and light-reflecting qualities.

Acquisition

The process of obtaining control of another company by purchase or exchange of stock.

Fishing License

A regulatory or legal mechanism that grants the holder permission to capture fish in specified areas during certain periods.

Trout

A common name for several species of freshwater fish belonging to the genera Oncorhynchus, Salmo, and others, often prized for sports fishing and as food.