-What Is Company B's Return on Investment (ROI)rounded to the }\\
\begin{array}

question 112

Multiple Choice

$\begin{array}{l}\text { The following information is available on Company B: }\\\begin{array} { | l | r | } \hline \text { Sales } & \$ 950,000 \\\hline \text { Operating Income } & \$ 56,000 \\\hline \text { Shareholders' Equity } & \$ 100,000 \\\hline \text { Average Operating Assets } & \$ 190,000 \\\hline \text { Minimum Required Rate of Return } & 20 \% \\\hline\end{array}\end{array}$
-What is Company B's return on investment (ROI) rounded to the nearest dollar?

• A) 4%.
• B) 15%.
• C) 29%.
• D) 36%.

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Definitions:

Retained Earnings

The amount of net profit remaining for the company after distributing dividends to its stockholders.

Note Payable

A written promise to pay a specified amount of money, along with interest, by a certain date.

Interest Expense

The cost incurred by an entity for borrowed funds, recognized in the income statement.

Income Statement

A financial report that shows the revenue, expenses, and profit or loss of a business over a specific period of time.