Vello, Inc. reported a return on investment of 12 per cent, a capital turnover of 5, and income of $180 000. On the basis of this information, the company's invested capital was a.$7 500 000. b.$1 500 000. c.$300 000. d.$900 000.

Vello, Inc. reported a return on investment of 12 per cent, a capital turnover of 5, and income of $180 000. On the basis of this information, the company's invested capital was a.$7 500 000. b.$1 500 000. c.$300 000. d.$900 000.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 10P: The Moore Corporation has operating income (EBIT) of 750,000. The companys depreciation expense is...

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Question

Vello, Inc. reported a return on investment of 12 per cent, a capital turnover of 5, and income of $180 000. On the basis of this information, the company's invested capital was

a.$7 500 000.

b.$1 500 000.

c.$300 000.

d.$900 000.

Formula Formula ROI (%) = Net Income Principal Amount × 100

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