The return on investments calculation considers only the following components: Sales Average Investment Net income Which of the following formulas best describes the return on investment calculation? 1. (Net Income / Sales) X (Sales / Net Income) 2. (Net Income / Sales) X (Salės / Average Investment) 3. (Average Investment / Sales) X (Net Income / Sales) 4. (Sales / Average Investment) X (Sales / Net Income)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The return on investments calculation considers only the following components:
Sales
Average Investment
Net income
Which of the following formulas best describes the return on investment calculation?
1. (Net Income / Sales) X (Sales / Net Income)
2. (Net Income / Sales) X (Salès / Average Investment)
3. (Average Investment / Sales) X (Net Income / Sales)
4. (Sales / Average Investment) X (Sales / Net Income)
Transcribed Image Text:The return on investments calculation considers only the following components: Sales Average Investment Net income Which of the following formulas best describes the return on investment calculation? 1. (Net Income / Sales) X (Sales / Net Income) 2. (Net Income / Sales) X (Salès / Average Investment) 3. (Average Investment / Sales) X (Net Income / Sales) 4. (Sales / Average Investment) X (Sales / Net Income)
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