Huang Company Reported the Following Information for the Current Year

question 13

Multiple Choice

Huang Company reported the following information for the current year: The company's return on investment was:
$$\begin{array} { | l | l r | } \hline \text { Sales } & \$ & 400,000 \\\hline \text { Average Operating Assets } & \$ & 250,000 \\\hline \text { Margin } & & 10 \% \\\hline\end{array}$$

• A)10%.
• B)6.25%.
• C)16%.
• D)Cannot be ascertained from the information provided.

---

Definitions:

Investment

Putting money into channels with the expectation of financial growth or profit generation.

Equipment

Tangible assets used in the operation or production process of a business, such as machinery, computers, and tools.

Interest Rate

The percentage of a loan that is applied as interest for the borrower, usually shown as an annual rate.

Account

A record summarizing all the transactions pertaining to a particular item in the financial statements.