Question: Return on investment is often expressed as follows: Required 1. What are the advantages of breaking down the computation into two separate components? 2. Fill

Return on investment is often expressed as follows:

Required
1. What are the advantages of breaking down the computation into two separate components?
2. Fill in the following blanks:

Return on investment is often expressed as follows: .:.

After filling in the blanks, comment on the relative performance of these companies as thoroughly as the datapermit.

Income Income Revenues Investment Revenues Investment Companies in Same Industry $00000 $200,000 $150,000 $250,000 Revenues Income Investment Income as a percentage of revenues Investment turnover ROI 60,000 $1,000,000 3% 2.0 6%

Step by Step Solution

★★★★★

3.34 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 The separate components highlight several features of return on investment not revealed by a single calculation a The importance of investment turnover as a key to income is stressed b The importanc... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

388-B-M-A-D-M (2415).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Peyton Smith enjoys listening to all types of music and owns countless CDs. Over the years, Peyton has gained a local reputation for knowledge of music from classical to rap and the ability to put...

What are the advantages of using a database system? What are the disadvantages?

What are the advantages of budgeting?

What are the advantages of a computer-based accounting system? Does such a system eliminate the need for human judgment? Explain.

need proper solution step by step Pi1.49A (1,0,4,5) Return on investment is often expressed as follows: ROI=AverageoperatingassetsControllablemargin=SalesControllablemarginAverageoperatingasetsSales...

Return on investment is often expressed as follows: InvestmentIncome=RevenuesIncomeInvestmentRevenues Requirements 1. What are the advantages of breaking down the computation into two separate...

Return on investment is often expressed as? follows: Income / Investment = Income / Revenues x Revenues / Investment a. What are the advantages of breaking down the computation into two separate...

2. The investment portfolio consists of short-term investments val ed at $5/,000. There nai.ing it.vestments vill not b_ so.a until the yew. 20zo. 3. Notes pavable consist or two notes. note 1....

(SO 4, 5) \"P1 1-58]! Return on investment is often expressed as follows: Compare and contrast performances under Controllable margin Controllable margin Sales ROI and residual ROI = A . = x . _...

Return on investment is often expressed as follows: X ROI= Controllable margin = Controllable margin Sales Average operating asset. Sales Average operating assets. Required a. What would be the...

QUESTION #2 Return on investment is often expressed as follows: ROI= Controllable margin = Controllable margin X Sales Average operating asset. Sales Average operating assets. Required a. What would...

In a survey of 100 stocks on NASDAQ, the average percent increase for the past year was 9% for NASDAQ stocks. The 'average increases for all NASDAQ stocks is the: a. population b. statistic c....

Find i0(t) for t > 0 in the network in Fig. P6.40 using the step-by-step method t-0 0 mA 10 mH io(t)

Which of the following is true? Option A Convergence of IASB and FASB standards will be a major step towards international harmonization. Option B The IASB has reduced disclosure requirements. Option...

Case 1. The ABC company will make an initial investment of $ 1 million. Assuming a market interest rate of 5% and cash flow for 5 years is expected as in the table below: Year ; Cash Flow 1 425,000 2...

Case: A student is preparing a business startup tavern as follows: Types of Drinks ; Sales price per unit ; Variable Cost ; Estimated sales per month Soft drinks $ 1 $ 0.60 750 Coffee $ 1.75 $ 0.50...

Use real world examples and companies to create a basis for your analysis. Always consider the CNSS cube when answering a question. Select one of the three characteristics of information security...

Read the books Project Management 5th edition by Eric W Larson and Microsoft project 2010. Required: Write a summary for both books.

Journalize the following transactions into the general journal in accordance with the rules of Journalizing, and the Double-entry accounting system. March 10 Gonzalez Company pays current month's...

What is the process of job design?

Basic Boards makes keyboards that are sold to different customers in two main distribution channels. Recently, the companys profitability has decreased. Management would like to analyze the...

Houston Infonautics, Inc., produces handheld Windows CE -compatible organizers. Houston Infonautics markets three different handheld models: PalmPro is a souped-up version for the executive on the...

Houston Infonautics senior vice president of marketing prepared his budget at the beginning of the third quarter assuming a 25% market share based on total sales. Foolinstead Research estimated that...

None of the answers above is correct. Which of the following statements is most correct? All else equal, long-term bonds have more interest rate risk than short-term bonds. If a coupon bond is...

Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An...

On Saturday's lunch surge at Ada's burger joint, they sold 268 sandwiches. Of those sandwiches sold: 68 sandwiches included turkey 50 sandwiches included cheddar 34 sandwiches included fledglings 21...