Question
Company reported the following amounts for July. Sales $240,000 Operating income 60,000 After-tax income 48,000 Operating assets, July 1 380,000 Operating assets, July 31 420,000
Company reported the following amounts for July.
| Sales | $240,000 |
| Operating income | 60,000 |
| After-tax income | 48,000 |
| Operating assets, July 1 | 380,000 |
| Operating assets, July 31 | 420,000 |
Test Companys required rate of return on all investments is 8%. The companys cost of capital is 6%. Total capital employed for July equaled $390,000.
Determine the return on investment (ROI) for July.
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Advanced Accounting
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
14th Edition
9781260247824
