you have a small business. your first - year financials are as follows: start - up costs = $60,800 gross…

you have a small business. your first - year financials are as follows: start - up costs = $60,800 gross sales = $65,800 total expenses = $28,500 income taxes = $6,370 what is the return on investment (roi) for your business?

you have a small business. your first - year financials are as follows: start - up costs = $60,800 gross sales = $65,800 total expenses = $28,500 income taxes = $6,370 what is the return on investment (roi) for your business?

Answer

Explanation:

Step1: Calculate net profit

Net profit = Gross sales - Total expenses - Income taxes. Net profit = $65800 - 28500 - 6370=$30930$.

Step2: Calculate ROI

ROI formula is $\text{ROI}=\frac{\text{Net profit}}{\text{Start - up costs}}\times100%$. ROI = $\frac{30930}{60800}\times 100%\approx 51%$.

Answer:

51%