christinasmith6808 christinasmith6808
  • 31-12-2020
  • Business
contestada

Corporation had the following performance in the last period:

Net operating income, $400,000;
Turnover, 6;
ROI 23%.

What were Corporation's average operating assets?

Respuesta :

abiolataiwo2015
abiolataiwo2015 abiolataiwo2015
  • 31-12-2020

Answer:

$1,739,130

Explanation:

Calculation for the Corporation's average operating assets

Using this formula

Average operating assets=Net operating income/ROI (Return on Investment)

Let plug in the formula

Average operating assets=$400,000/0.23

Average operating assets=$1,739,130

The Corporation's average operating assets will be $1,739,130

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