Briggs Company has operating income of $45,760, invested assets of $143,000, and sales of $457,600. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin % b. Investment turnover c. Return on investment %
Briggs Company has operating income of $45,760, invested assets of $143,000, and sales of $457,600. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin % b. Investment turnover c. Return on investment %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Briggs Company has operating income of $45,760, invested assets of $143,000, and sales of $457,600. Use the DuPont formula to compute the
| a. Profit margin | % | |
| b. Investment turnover | ||
| c. Return on investment | % |
Expert Solution
Step 1 Introduction:
Return on investment helps in measuring the efficiency of the amount invested in a particular investment. It provides information regarding how much return a particular investment is generating. It can be represented as a percentage or a ratio.
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