A company reports the following for the past year. $ 23,840,000 6,556,000 29,800,000 The company's CFO believes that income for next year will be $7,211,600. Average assets will be the same as the past year. Sales Income Average assets 1. Compute return on investment for the past year. 2. If the CFO's forecast is correct, what will return on investment be for next year?
A company reports the following for the past year. $ 23,840,000 6,556,000 29,800,000 The company's CFO believes that income for next year will be $7,211,600. Average assets will be the same as the past year. Sales Income Average assets 1. Compute return on investment for the past year. 2. If the CFO's forecast is correct, what will return on investment be for next year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 22-14 (Algo) Return on investment LO A1, A2
A company reports the following for the past year.
Sales
Income
$ 23,840,000
6,556,000
29,800,000
Average assets
The company's CFO believes that income for next year will be $7,211,600. Average assets will be the same as the past year.
1. Compute return on investment for the past year.
2. If the CFO's forecast is correct, what will return on investment be for next year?
Complete this question by entering your answers in the tabs below.
Required 11 Required 2
Compute return on investment for the past year.
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