Question

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?

Answer 1

$1,739,130

Step-by-step 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