Mienfoo Catering Company increased its ROI from 25% to 30%. Net operating income and sales remained at their previous levels of P75,000 and P1,500,000 respectively. The increase in ROI was attributed to a reduction in operating assets brought about by the sale of obsolete inventory at cost (the proceeds from the sale were used to reduce bank loans). Inventory was reduced by
Mienfoo Catering Company increased its ROI from 25% to 30%. Net operating income and sales remained at their previous levels of P75,000 and P1,500,000 respectively. The increase in ROI was attributed to a reduction in operating assets brought about by the sale of obsolete inventory at cost (the proceeds from the sale were used to reduce bank loans). Inventory was reduced by
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Mienfoo Catering Company increased its ROI from 25% to 30%.
Net operating income and sales remained at their previous levels
of P75,000 and P1,500,000 respectively. The increase in ROI was
attributed to a reduction in operating assets brought about by
the sale of obsolete inventory at cost (the proceeds from the sale
were used to reduce bank loans). Inventory was reduced by](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9a527d0c-4851-4ab6-9414-6b696f50cb5c%2Fc06ac373-3b13-409e-b28b-2e9a62f0d3c9%2Fxf72ktm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Mienfoo Catering Company increased its ROI from 25% to 30%.
Net operating income and sales remained at their previous levels
of P75,000 and P1,500,000 respectively. The increase in ROI was
attributed to a reduction in operating assets brought about by
the sale of obsolete inventory at cost (the proceeds from the sale
were used to reduce bank loans). Inventory was reduced by
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