Return on Investment , Profit margin and Investment Turnover: The above three ratios are important tool to measure the company ‘efficiency in earning profits and has been described as under: Return on Investment: This suggest the percentage income earned by the company on the average amount of net assets employed in the company. The higher the ratio, better is the performance of the company. Profit Margin: The ratio suggest that the percentage margin which the company is earning on the sales consideration. Investment turnover ratio; The Investment turnover ratio suggest that the number of times the assets get converted in to sales. The efficiency of the company is counted on this ratio as the more number of times the assets get converted in to sales, more efficient is the company. However, all the three ratios is integrated in the sense, that the Return on investment is a product of Margin and assets turnover ratio. Requirement1&2: To Determine: The Return on Investment and profit margin ratio of the company shall be determined.

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Answer 1

Question

Chapter 24, Problem 15E

To determine

Return on Investment, Profit margin and Investment Turnover:

The above three ratios are important tool to measure the company ‘efficiency in earning profits and has been described as under:

Return on Investment: This suggest the percentage income earned by the company on the average amount of net assets employed in the company. The higher the ratio, better is the performance of the company.

Profit Margin: The ratio suggest that the percentage margin which the company is earning on the sales consideration.

Investment turnover ratio; The Investment turnover ratio suggest that the number of times the assets get converted in to sales. The efficiency of the company is counted on this ratio as the more number of times the assets get converted in to sales, more efficient is the company.

However, all the three ratios is integrated in the sense, that the Return on investment is a product of Margin and assets turnover ratio.

Requirement1&2:

To Determine: The Return on Investment and profit margin ratio of the company shall be determined.

To determine

Requirement3&4:

To determine: The revised ROI and Assets turnover ratio shall be computed.

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Answer 2

Question

Chapter 24, Problem 15E

To determine

Return on Investment, Profit margin and Investment Turnover:

The above three ratios are important tool to measure the company ‘efficiency in earning profits and has been described as under:

Return on Investment: This suggest the percentage income earned by the company on the average amount of net assets employed in the company. The higher the ratio, better is the performance of the company.

Profit Margin: The ratio suggest that the percentage margin which the company is earning on the sales consideration.

Investment turnover ratio; The Investment turnover ratio suggest that the number of times the assets get converted in to sales. The efficiency of the company is counted on this ratio as the more number of times the assets get converted in to sales, more efficient is the company.

However, all the three ratios is integrated in the sense, that the Return on investment is a product of Margin and assets turnover ratio.

Requirement1&2:

To Determine: The Return on Investment and profit margin ratio of the company shall be determined.

To determine

Requirement3&4:

To determine: The revised ROI and Assets turnover ratio shall be computed.

Expert Solution & Answer

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Answer 3

Question

Chapter 24, Problem 15E

To determine

Return on Investment, Profit margin and Investment Turnover:

The above three ratios are important tool to measure the company ‘efficiency in earning profits and has been described as under:

Return on Investment: This suggest the percentage income earned by the company on the average amount of net assets employed in the company. The higher the ratio, better is the performance of the company.

Profit Margin: The ratio suggest that the percentage margin which the company is earning on the sales consideration.

Investment turnover ratio; The Investment turnover ratio suggest that the number of times the assets get converted in to sales. The efficiency of the company is counted on this ratio as the more number of times the assets get converted in to sales, more efficient is the company.

However, all the three ratios is integrated in the sense, that the Return on investment is a product of Margin and assets turnover ratio.

Requirement1&2:

To Determine: The Return on Investment and profit margin ratio of the company shall be determined.

To determine

Requirement3&4:

To determine: The revised ROI and Assets turnover ratio shall be computed.

Expert Solution & Answer

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Answer 4

Question

Chapter 24, Problem 15E

To determine

Return on Investment, Profit margin and Investment Turnover:

The above three ratios are important tool to measure the company ‘efficiency in earning profits and has been described as under:

Return on Investment: This suggest the percentage income earned by the company on the average amount of net assets employed in the company. The higher the ratio, better is the performance of the company.

Profit Margin: The ratio suggest that the percentage margin which the company is earning on the sales consideration.

Investment turnover ratio; The Investment turnover ratio suggest that the number of times the assets get converted in to sales. The efficiency of the company is counted on this ratio as the more number of times the assets get converted in to sales, more efficient is the company.

However, all the three ratios is integrated in the sense, that the Return on investment is a product of Margin and assets turnover ratio.

Requirement1&2:

To Determine: The Return on Investment and profit margin ratio of the company shall be determined.

To determine

Requirement3&4:

To determine: The revised ROI and Assets turnover ratio shall be computed.

Expert Solution & Answer

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Answer 5

Chapter 24, Problem 15E

To determine

Return on Investment, Profit margin and Investment Turnover:

The above three ratios are important tool to measure the company ‘efficiency in earning profits and has been described as under:

Return on Investment: This suggest the percentage income earned by the company on the average amount of net assets employed in the company. The higher the ratio, better is the performance of the company.

Profit Margin: The ratio suggest that the percentage margin which the company is earning on the sales consideration.

Investment turnover ratio; The Investment turnover ratio suggest that the number of times the assets get converted in to sales. The efficiency of the company is counted on this ratio as the more number of times the assets get converted in to sales, more efficient is the company.

However, all the three ratios is integrated in the sense, that the Return on investment is a product of Margin and assets turnover ratio.

Requirement1&2:

To Determine: The Return on Investment and profit margin ratio of the company shall be determined.

To determine

Requirement3&4:

To determine: The revised ROI and Assets turnover ratio shall be computed.

Answer 6

Chapter 24, Problem 15E

To determine

Return on Investment, Profit margin and Investment Turnover:

The above three ratios are important tool to measure the company ‘efficiency in earning profits and has been described as under:

Return on Investment: This suggest the percentage income earned by the company on the average amount of net assets employed in the company. The higher the ratio, better is the performance of the company.

Profit Margin: The ratio suggest that the percentage margin which the company is earning on the sales consideration.

Investment turnover ratio; The Investment turnover ratio suggest that the number of times the assets get converted in to sales. The efficiency of the company is counted on this ratio as the more number of times the assets get converted in to sales, more efficient is the company.

However, all the three ratios is integrated in the sense, that the Return on investment is a product of Margin and assets turnover ratio.

Requirement1&2:

To Determine: The Return on Investment and profit margin ratio of the company shall be determined.

Answer 7

Chapter 24, Problem 15E

To determine

Return on Investment, Profit margin and Investment Turnover:

The above three ratios are important tool to measure the company ‘efficiency in earning profits and has been described as under:

Return on Investment: This suggest the percentage income earned by the company on the average amount of net assets employed in the company. The higher the ratio, better is the performance of the company.

Profit Margin: The ratio suggest that the percentage margin which the company is earning on the sales consideration.

Investment turnover ratio; The Investment turnover ratio suggest that the number of times the assets get converted in to sales. The efficiency of the company is counted on this ratio as the more number of times the assets get converted in to sales, more efficient is the company.

However, all the three ratios is integrated in the sense, that the Return on investment is a product of Margin and assets turnover ratio.

Requirement1&2:

To Determine: The Return on Investment and profit margin ratio of the company shall be determined.

Answer 8

To determine

Requirement3&4:

To determine: The revised ROI and Assets turnover ratio shall be computed.

Answer 9

To determine

Requirement3&4:

To determine: The revised ROI and Assets turnover ratio shall be computed.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 24 - Prob. 1DQ Ch. 24 - What is the difference between operating...Ch. 24 - What are controllable costs?Ch. 24 - _________costs are not within the manager’s...Ch. 24 - Prob. 5DQ Ch. 24 - Prob. 6DQ Ch. 24 - Prob. 7DQ Ch. 24 - What is the difference between direct and indirect...Ch. 24 - Prob. 9DQ Ch. 24 - Prob. 10DQ

Requirement3&4: To determine: The revised ROI and Assets turnover ratio shall be computed.

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Chapter 24 Solutions

Requirement3&4:

To determine: The revised ROI and Assets turnover ratio shall be computed.