Last year a company had sales of 400000 a turnover of 29 and

Last year a company had sales of $400,000, a turnover of 2.9, and a return on investment of 29%. The company\'s net operating income for the year was:

$116,000

$76,000

$40,000

$137,931

Solution

$40,000

turnover of 2.9= sales of $400,000/investment

investment=$137,931.01

net operating income for the year =investment$137,931.01*return on investment of 29%=$40,000.