The income statement for the Commercial Construction Division of the Kenyon Company is as follows: Sales $272,000 Operating expenses 132,000 Net operating income 140,000 Interest expense 20,000 Earnings before taxes 120,000 Income tax expense (30%) 36,000 Net income $84,000 If this divisions invested capital is $500,000, how much is its return on investment?

Sep 8, 2023

  1. The income statement for the Commercial Construction Division of the Kenyon Company is as follows: 
  2. Sales $272,000 
  3. Operating expenses 132,000 
  4. Net operating income 140,000 
  5. Interest expense 20,000 
  6. Earnings before taxes 120,000 
  7. Income tax expense (30%) 36,000 
  8. Net income $84,000 
  9. If this division’s invested capital is $500,000, how much is its return on investment?

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