Income Income Investment Revenues Revenues Investment 1. What advantages are there in the breakdown of the computation into two separate components? 2. Fill in the blanks for the following table: Required Companies in Same Industry A B Revenues Income Investment Income as a percentage of revenues Investment turnover $1,600,000 $ 96,000 $ 800,000 $1,300,000 $ 78,000 $2,600,000 1.5% 2.0 ? ROI ? 3% After filling in the blanks, comment on the relative performance of these companies as thoroughly as the data permit.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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ROI, comparisons of three companies. (CMA, adapted) Return on investment (ROI) is often expressed as follows:

Income
Income
Investment Revenues
Revenues
Investment
1. What advantages are there in the breakdown of the computation into two separate components?
2. Fill in the blanks for the following table:
Required
Companies in Same Industry
A
B
Revenues
Income
Investment
Income as a percentage of revenues
Investment turnover
$1,600,000
$ 96,000
$ 800,000
$1,300,000
$ 78,000
$2,600,000
1.5%
2.0
?
ROI
?
3%
After filling in the blanks, comment on the relative performance of these companies as thoroughly as the
data permit.
Transcribed Image Text:Income Income Investment Revenues Revenues Investment 1. What advantages are there in the breakdown of the computation into two separate components? 2. Fill in the blanks for the following table: Required Companies in Same Industry A B Revenues Income Investment Income as a percentage of revenues Investment turnover $1,600,000 $ 96,000 $ 800,000 $1,300,000 $ 78,000 $2,600,000 1.5% 2.0 ? ROI ? 3% After filling in the blanks, comment on the relative performance of these companies as thoroughly as the data permit.
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