Brief Exercise 9-4 (Algo) Calculating return on investment LO 9-4The following financial information pertains to Smith Architects:Net incomeItemsBeginning assetsEnding assetsYear 4$ 241,000782,000982,000a-1. Return on investment Year 3a-2. Return on investment Year 4b. The company performed better inYear 3$221,000706,000786,000Required: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?%%

Ratio analysis helps to analyze the financial statements of the company. Management can make…

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

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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