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ROI for Apple

Financial information for a recent year for Apples, Inc. is:

Sales

$40,000,000
Less:

Cost of goods sold
25,000,000

Selling and administrative expenses
5,000,000

Interest expense
1,000,000

Income before taxes
9,000,000

Less: income taxes
3,150,000

Net income

5,850,000

Total assets were $104,000,000 and the non-interest-bearing current liabilities were $2,000,000. The company has a required rate of return on invested capital of 10%.

Calculate the company's return on investment.

Solution Summary

Solution attaches a Word document showing how to find Apple's return on investment when given a range of income figures.

$2.19