Managerial Accounting for Managers
Managerial Accounting for Managers
5th Edition
ISBN: 9781260480337
Author: Noreen, Eric
Publisher: MCGRAW-HILL HIGHER EDUCATION
Question
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Chapter 11, Problem 11.20P

1.

To determine

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

The company’s return on investments for the period using the ROI formula stated in terms of margin and turnover.

2.

To determine

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

Result of average operating assets when inventory are reduced by 400,000.

3.

To determine

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

The net operating income and ROI.

4.

To determine

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

Net operating assets, average operating asset, and ROI.

5.

To determine

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

Sales, net operating income and ROI.

6.

To determine

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

ROI if obsolete inventory carried on the books at a cost of $40,000 is scrapped and written off as a loss.

7.

To determine

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

ROI if company uses $200,000 of cash to repurchase and retire some of its common stock.

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