Example: ABC Company have the following information for 2006, 2007 2006 2007 Cash 200000 250000 Inventory 100000 120000 A/R 25000 30000 Equipment's 150000 170000 Accumulated depreciation 15000 20000 Net sales 1200000 Net operating income 50000 Cost of goods sold 650000 Operating expenses 90000 Required: Compute the ROI for 2007? ANSE 50000/1200000 x 1200000/522500 = 9.5%