Question

the strait company had a target roi of 15% and reported the following: net income of $8,760 liabilities of $48,000 assets of $61,000 equity of $13,000 what is the company's roi? convert your final answer to a percentage, rou

Answer 1

The ROI of the Strait Company is 14.36%.

Step-by-step explanation:

Net income = $8,760

Liabilities = $48,000

Assets = $61,000

Equity = $13,000

The ROI (Return on Investment) is a measure of the efficiency and profitability of an investment.

To calculate the ROI, we need to divide the net income by the total assets. In this case:

ROI = (Net Income / Total Assets) x 100%

Using the given information, the ROI of the Strait Company can be calculated as follows:

ROI = ($8,760 / $61,000) x 100%

= 14.36%

Answer 2

The ROI for Strait Company is calculated as 14.36%, which is found by dividing the net income by the total assets and converting the outcome to a percentage.

Step-by-step explanation:

The Return on Investment (ROI) can be calculated by dividing the Net Income by the Total Assets and then multiplying the result by 100 to convert it to a percentage. For Strait Company, the calculation would be as follows:

Add the beginning and ending total assets together: $61,000 + $61,000 = $122,000

Divide the sum by 2: $122,000 ÷ 2 = $61,000

ROI = (Net Income / Total Assets) × 100

ROI = ($8,760 / $61,000) × 100

ROI = 0.1436 × 100

ROI = 14.36%

Therefore, the company's ROI is 14.36%, which is slightly below their target of 15%.