Answered: Consider the information in the…

Consider the information in the following table. Using the DuPont formula, calculate the rate of return on investment. Income from operations $70,000 Invested assets 250,000 Sales 560,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.1.1MBA

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Question

Consider the information in the following table. Using the DuPont formula, calculate the rate of return on investment.

Income from operations	$70,000
Invested assets	250,000
Sales	560,000

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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