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.

FINANCIAL ACCOUNTING
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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 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.
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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