Homework Answers
Hobart’s Return on investment for the last year
Return on investment for the last year = Operating Income / [(Operating assets at the beginning + Operating assets at the ending)/2]
= $86,000 / [$390,000 + $420,000)/2]
= $86,000 / [$810,000/2]
= $86,000 / $405,000
= 0.21
“Hence, the Hobart’s Return on investment for the last year will be (B). 0.21”
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