What is the value of the total assets for the Frizzle Company?

  1. $625,000
  2. $375,000
  3. $1,000,000
  4. $6,000,000

In a recent electrical storm, the Frizzle Company lost a portion of its accounting records. The IT manager at Frizzle was able to retrieve the following information:

Sales

$2,500,000

Net operating income

$1,500,000

Total assets

Return on investment

0.25

Residual Income