The following financial information pertains to Smith Architects: Net income Items Beginning assets Ending assets Required: Year 4 $ 241,000 782,000 982,000 Year 3 $ 221,000 706,000 786,000 a. Calculate Smith Architects return on investment for Year 3 and Year 4.
The following financial information pertains to Smith Architects: Net income Items Beginning assets Ending assets Required: Year 4 $ 241,000 782,000 982,000 Year 3 $ 221,000 706,000 786,000 a. Calculate Smith Architects return on investment for Year 3 and Year 4.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Brief Exercise 9-4 (Algo) Calculating return on investment LO 9-4
The following financial information pertains to Smith Architects:
Net income
Items
Beginning assets
Ending assets
Year 4
$ 241,000
782,000
982,000
a-1. Return on investment Year 3
a-2. Return on investment Year 4
b. The company performed better in
Year 3
$
221,000
706,000
786,000
Required:
a. Calculate Smith Architects return on investment for Year 3 and Year 4.
Note: Round percentages to 1 decimal place.
b. Did the company perform better in Year 3 or Year 4?
%
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F29bdc729-eeba-4034-8f4b-26b16c29518a%2Fc478208f-2c39-486e-87d2-4cb17f294c03%2F05rl9iw_processed.png&w=3840&q=75)
Transcribed Image Text:Brief Exercise 9-4 (Algo) Calculating return on investment LO 9-4
The following financial information pertains to Smith Architects:
Net income
Items
Beginning assets
Ending assets
Year 4
$ 241,000
782,000
982,000
a-1. Return on investment Year 3
a-2. Return on investment Year 4
b. The company performed better in
Year 3
$
221,000
706,000
786,000
Required:
a. Calculate Smith Architects return on investment for Year 3 and Year 4.
Note: Round percentages to 1 decimal place.
b. Did the company perform better in Year 3 or Year 4?
%
%
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