Return on investment is often expressed as follows:d.Requirements1. What are the advantages of breaking down the computation into two separate components?2. Fill in the blanks for the following table:RevenuesIncomeInvestmentIncome as a percentage of revenuesInvestment turnoverROIRequirement 2. Fill in the blanks for the following table: (Enter investment turnover to the nearest tenth, X.X.)Companies in Same IndustryBIncome and investment alone shedinvestment or to itsA1,400,000 $210,000 $700,000%Company B does%income.1,100,000165,000%IncomeIncomeRevenuesInvestment Revenues Investment3%CNow comment on the relative performance of these companies as thoroughly as the data permit.light on comparative performances. Thus, weCompany B should emphasize increasing investment turnover by reducingpercentage of revenues by increasing only its5,500,0001.5%2.0=%Company A in terms of income margin. Company B has aCompany A's. Company C's income as a percentage of revenue isXdetermine whether B'sor increasingreturn on investment in comparison with A's is attributable to itsturnover of investment than does Company A. Company C's investment turnover isCompany A's.Company C's management should concentrate on increasing its income as a

Return on investment is often expressed as follows: Requirements 1. What are the advantages of breaking down the computation into two separate components? 2. Fill in the blanks for the following table: d. Revenues Income Investment Income as a percentage of revenues Investment turnover Requirement 2. Fill in the blanks for the following table: (Enter investment turnover to the nearest tenth, X.X.) Companies in Same Industry B $ $ $ A 1,400,000 $ 210,000 $ 700,000 % 1,100,000 165,000 Income Revenues Income Investment Revenues Investment % $ C C 5,500,000 1.5% 20

Return on investment is often expressed as follows: Requirements 1. What are the advantages of breaking down the computation into two separate components? 2. Fill in the blanks for the following table: d. Revenues Income Investment Income as a percentage of revenues Investment turnover Requirement 2. Fill in the blanks for the following table: (Enter investment turnover to the nearest tenth, X.X.) Companies in Same Industry B $ $ $ A 1,400,000 $ 210,000 $ 700,000 % 1,100,000 165,000 Income Revenues Income Investment Revenues Investment % $ C C 5,500,000 1.5% 20

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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