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Reference: 12-10
Harstin Corporation Has Provided the Following Data -During Cummings Most Profitable Year Its Net Income Was $25,000

Question 51

Multiple Choice

Reference: 12-10
Harstin Corporation has provided the following data:  Sales $625,000 Gross margin 70,000 Net operating income 50,000 Stockholders’ equity 90,000 Average operating assets 250,000 Residual income 20,000\begin{array} { | l | r | } \hline \text { Sales } & \$ 625,000 \\\hline \text { Gross margin } & 70,000 \\\hline \text { Net operating income } & 50,000 \\\hline \text { Stockholders' equity } & 90,000 \\\hline \text { Average operating assets } & 250,000 \\\hline \text { Residual income } & 20,000 \\\hline\end{array}
-During Cummings most profitable year its net income was $25,000. What is the ROI if the investment was $50,000?


A) 63%.
B) 51%.
C) 50%.
D) 28%.

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