ROI, comparisons of three companies. (CMA, adapted) Return on investment (ROI) is often ex- pressed as follows: Income Income Revenues Investment 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: Companies in Same Industry B $1,600,000 $ 96,000 $ 800,000 Revenues $1,300,000 Income $ 78,000 ? Investment $2,600,000 Income as a percentage of revenues Investment turnover 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.
ROI, comparisons of three companies. (CMA, adapted) Return on investment (ROI) is often ex- pressed as follows: Income Income Revenues Investment 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: Companies in Same Industry B $1,600,000 $ 96,000 $ 800,000 Revenues $1,300,000 Income $ 78,000 ? Investment $2,600,000 Income as a percentage of revenues Investment turnover 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![ROI, comparisons of three companies. (CMA, adapted) Return on investment (ROI) is often ex-
pressed as follows:
Income
Income
Revenues
Investment 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:
Companies in Same Industry
B
$1,600,000
$ 96,000
$ 800,000
Revenues
$1,300,000
Income
$ 78,000
?
Investment
$2,600,000
Income as a percentage of revenues
Investment turnover
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F454dd1a6-ce25-4b58-ae3e-3e623ff0f3af%2Faff4ca13-6091-4082-a205-e0cc5512e3f0%2Fksp51a.jpeg&w=3840&q=75)
Transcribed Image Text:ROI, comparisons of three companies. (CMA, adapted) Return on investment (ROI) is often ex-
pressed as follows:
Income
Income
Revenues
Investment 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:
Companies in Same Industry
B
$1,600,000
$ 96,000
$ 800,000
Revenues
$1,300,000
Income
$ 78,000
?
Investment
$2,600,000
Income as a percentage of revenues
Investment turnover
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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