Financial information for Magic Ltd. is as follows:AssetsCashMagic Itd.Balnce Sheet (Partial)2015Accounts receivablesInventoryPlant and equipment, netInvestments in P ltd.Land (undeveloped)Total assets29.34%35.61%Determine return on investment for 2016.39.83%201621.89%Magic ltd.Income StatementSales$144,000$149,000 Operating expenses$351,000 $490,000 Net operating income $763,960$580,000 $490,000 Interest and taxes:$823,000 $809,000Interest expenseTax expense$404,000 $439,000$267,000 $261,000|$2.569.000 $2.638.000 Net income$4,513,000$3,749,040$149,000$222,500$392.460

RETURN ON INVESTMENTReturn on investment is one of the profitability ratios which shows how much…

Financial information for Magic Ltd. is as follows: Assets Cash Magic Itd. Balnce Sheet (Partial) 2015 Accounts receivables Inventory Plant and equipment, net Investments in P ltd. Land (undeveloped) Total assets 29.34% Determine return on investment for 2016. 35.61% 39.83% 2016 21.89% Magic Itd. Income Statement Sales $144,000 $149,000 Operating expenses $351,000 $490,000 Net operating income $763,960 $580,000 $490,000 Interest and taxes: $823,000 $809,000 $404,000 $439,000 Interest expense Tax expense $267,000 $261,000 |$2.569.000 $2.638.000 Net income $4,513,000 $3,749,040 $149,000 $222,500 $392.460

Financial information for Magic Ltd. is as follows: Assets Cash Magic Itd. Balnce Sheet (Partial) 2015 Accounts receivables Inventory Plant and equipment, net Investments in P ltd. Land (undeveloped) Total assets 29.34% Determine return on investment for 2016. 35.61% 39.83% 2016 21.89% Magic Itd. Income Statement Sales $144,000 $149,000 Operating expenses $351,000 $490,000 Net operating income $763,960 $580,000 $490,000 Interest and taxes: $823,000 $809,000 $404,000 $439,000 Interest expense Tax expense $267,000 $261,000 |$2.569.000 $2.638.000 Net income $4,513,000 $3,749,040 $149,000 $222,500 $392.460

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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