Flash Corporation Has Operating Income of $180,000,a Sales Margin of 15%,and

question 73

Multiple Choice

Flash Corporation has operating income of $180,000,a sales margin of 15%,and capital turnover of 2.0.The return on investment (ROI) for Flash Corporation would be closest to:

• A)8%.
• B)2%.
• C)30%.
• D)125%.

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Definitions:

Assets Decrease

Assets decrease refers to a reduction in the total value of a company’s assets, which can result from factors like asset sales, depreciation, or impairments.

Cost of Goods Sold

The direct financial outlays for making the goods a company offers for sale, including the cost of materials and labor.

Supplies Account

An account used to track the costs of supplies that have not been consumed by the end of an accounting period.

Operating Expenses

Costs associated with the day-to-day operations of a business, such as rent, utilities, and payroll.