Parkinson Company Provides the Following Financial Information Calculate Return on Investment Based on the Information Given Above

Multiple Choice

Parkinson Company provides the following financial information: $$\begin{array} { | l | r | } \hline \text { Income from operations } & \$ 200,000 \\\hline \text { Interest expense } & 45,000 \\\hline \text { Gains/(losses) on sale of equipment } & ( 2,500 ) \\\hline \text { Net income } & 152,500 \\\hline \text { Total assets at Jan 1 } & 2,600,000 \\\hline \text { Total assets at Dec } 31 & 3,200,000 \\\hline\end{array}$$ Calculate return on investment based on the information given above.

A) 6.3%
B) 5.3%
C) 6.9%
D) 7.2%