The following financial information pertains to Smith Architects: Items Net income Beginning assets Ending assets Year 4 $ 229,000 758,000 958,000 Year 3 $ 209,000 694,000 774,000 Required: a. Calculate Smith Architects return on investment for Year 3 and Year 4. Note: Round percentages to 1 decimal place. b. Did the company perform better in Year 3 or Year 4?

The following financial information pertains to Smith Architects: Items Net income Beginning assets Ending assets Year 4 $ 229,000 758,000 958,000 Year 3 $ 209,000 694,000 774,000 Required: a. Calculate Smith Architects return on investment for Year 3 and Year 4. Note: Round percentages to 1 decimal place. b. Did the company perform better in Year 3 or Year 4?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter24: Analysis Of Financial Statements

Section: Chapter Questions

Problem 3SEB

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