Problem: Financial information for a recent year for Apples, Inc. is:
Sales
$40,000,000
Less:
Cost of goods sold
25,000,000
Selling and administrative expenses
5,000,000
Interest expense
1,000,000
Income before taxes
9,000,000
Less: income taxes
3,150,000
Net income
5,850,000
Total assets were $104,000,000 and the non-interest-bearing current liabilities were $2,000,000. The company has a required rate of return on invested capital of 10%.
Calculate the company's return on investment.