Concept introduction:
Return on investment is a ratio calculated to determine how much return our invested assets are generating. A high return on Investment shows that investments are generating higher returns.
Return on Investment of ZNet Co.
Concept introduction:
Profit Margin:
Profit margin is a factor of determining profitability of a company. The higher the profit margin, the higher is the growth of the company. It is calculated by dividing net profit or net income to the sales of the company.
Profit Margin of ZNet Co.
Return on investment after 20% increase in sales.
(4)
Concept introduction:
Investment Turnover:
Investment turnover is used to determine capacity of an organisation to generate revenue with a specific amount of invested assets. It is calculated by dividing company’s sales value with company’s average invested assets.
Investment Turnover of ZNet Co.
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Managerial Accounting
- Noble Electronics reported annual sales revenue of $3,150,000. During the year, accounts receivable increased from a $65,000 beginning balance to a $85,000 ending balance. Accounts payable decreased from a $70,000 beginning balance to a $50,000 ending balance. How much is cash received from customers for the year? A. $3,130,000 B. $3,135,000 C. $3,165,000 D. $3,100,000arrow_forwardAt the end of Everest Manufacturing Ltd's first year of operations... Please answer the general accounting questionarrow_forwardAccurate answerarrow_forward
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College