Return on investment is often expressed as follows: Requirements 1. What are the advantages of breaking down the computation into two separate components? 2. Fill in the blanks for the following table: d. Revenues Income Investment Income as a percentage of revenues Investment turnover Requirement 2. Fill in the blanks for the following table: (Enter investment turnover to the nearest tenth, X.X.) Companies in Same Industry B $ $ $ A 1,400,000 $ 210,000 $ 700,000 % 1,100,000 165,000 Income Revenues Income Investment Revenues Investment % $ C C 5,500,000 1.5% 20

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SPREADSHEET PROBLEMS 1. If a firm's net income (profits before taxes) is $120,000 and it has total assets of $1.5 million, what is its return on assets? 2. If a firm's total assets is $2.5 million and its return on assets is 12 percent, what is its net income? 3. If a firm is able to sustain the same level of operations in terms of sales and administrative expenses but reduces its materials cost by $50,000 through smarter purchases, what is the profit-leverage effect on gross profits? What is the profit- leverage effect on profits before taxes? 4. If a firm's cost of goods sold is $2.5 million and its average inventory is $500,000, what is the inventory turnover? 5. If a firm's cost of goods sold is $5 million and its inventory turnover is ten times, what is the average inventory? 6. If a firm's inventory turnover is eight times and its average inventory is $160,000, what is the cost of goods sold? 7. A retailer in Las Vegas has an ending inventory of $250,000 as of December 31, 2016,…

Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 121,000 207,000 $4,416,000 3,665,280 750,720 328,000 $ 422,720 Beginning Balance $ 136,000 339,000 568,000 857,000 395,000 251,000 $ 2,546,000 Ending Balance $ 131,000 479,000 488,000 842,000 435,000 253,000 $ 2,628,000 $ 349,000 $ 374,000 983,000 1,189,000 983,000 1,296,000 $ 2,546,000 $ 2,628,000 The company paid dividends of $315,720 last year. The “Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The…