Bark and Bliss Limited is a pet supply company headquartered in Edmonton, Alberta. They have four different lines of business. Here is an excerpt of their financial statements for the December 31, 2020 fiscal year: Dog Walking Brick & Division Online Shop Pet Training & Pet Care Mortar Stores Sales $4 22,500,000 13,980,000 27,630,500 5,407,000 Net operating income $1 1,250,000 1,840,000 2,845,200 1,134,750 Average operating assets $1 7,580,000 8,275,000 14,500,000 5,250,000 Bark and Bliss Limited has a policy that all investments must have a rate of return of at least 15%. Required: a. What is the return on investment for each of Bark and Bliss' four lines of business? Round your calculations to one decimal place. b. If the Online Store division was able to reduce its operating expenses by $57,000, what would be its new return on investment?

Bark and Bliss Limited is a pet supply company headquartered in Edmonton, Alberta. They have four different lines of business. Here is an excerpt of their financial statements for the December 31, 2020 fiscal year: Dog Walking Brick & Division Online Shop Pet Training & Pet Care Mortar Stores Sales $4 22,500,000 13,980,000 27,630,500 5,407,000 Net operating income $1 1,250,000 1,840,000 2,845,200 1,134,750 Average operating assets $1 7,580,000 8,275,000 14,500,000 5,250,000 Bark and Bliss Limited has a policy that all investments must have a rate of return of at least 15%. Required: a. What is the return on investment for each of Bark and Bliss' four lines of business? Round your calculations to one decimal place. b. If the Online Store division was able to reduce its operating expenses by $57,000, what would be its new return on investment?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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