The 2014 income statement for the East Division of Procter Wells Company is as follows:...
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The 2014 income statement for the East Division of Procter Wells Company is as follows: Sales $1,800,000 Operating expenses 1,380,000 Net operating income 420,000 Interest expense 120,000 Earnings before taxes 300,000 Income tax expense (40%) 120,000 Net income $ 180,000 This divisions invested capital is $4,000,000. How much is the East Divisions return on investment? A. 6.3% B. 5.7% C. 10.5% D. 7.5%
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