
a.
Concept Introduction:
Return on Investment = Net Income / Average Total Assets
Note: Average total assets are calculated as an average of beginning and ending total assets. The formula to calculate the average total assets is as follows:
To Calculate:
The interest earned on the savings account for six months.
b.
Concept Introduction:
Return on Investment: The Return on Investment is the profitability ratio that measures the percentage of profit earned on average assets invested in the business. Return on assets is calculated by dividing the net income by average total assets. The formula to calculate Return on assets is as follows:
Return on Investment = Net Income / Average Total Assets
Note: Average total assets are calculated as an average of beginning and ending total assets. The formula to calculate the average total assets is as follows:
To Calculate:
The
Concept Introduction:
Return on Investment: The Return on Investment is the profitability ratio that measures the percentage of profit earned on average assets invested in the business. Return on assets is calculated by dividing the net income by average total assets. The formula to calculate Return on assets is as follows:
Return on Investment = Net Income / Average Total Assets
Note: Average total assets are calculated as an average of beginning and ending total assets. The formula to calculate the average total assets is as follows:
The decision on investment.

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Chapter 3 Solutions
Principles of Financial Accounting (Elon University)
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