The following information pertains to Splash Brothers’ Corporation: Sales margin 25% Capital Turnover 2 Income ₱ 80,000 Required Rate of Return 10% What is the average investment or operating assets? Show solution Group of answer choices ₱ 160,000 ₱ 320,000 ₱ 180,000 ₱ 800,000

The following information pertains to Splash Brothers’ Corporation: Sales margin 25% Capital Turnover 2 Income ₱ 80,000 Required Rate of Return 10% What is the average investment or operating assets? Show solution Group of answer choices ₱ 160,000 ₱ 320,000 ₱ 180,000 ₱ 800,000

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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Question

The following information pertains to Splash Brothers’ Corporation:

Sales margin	25%
Capital Turnover	2
Income	₱ 80,000
Required Rate of Return	10%

What is the average investment or operating assets? Show solution

Group of answer choices

₱ 160,000

₱ 320,000

₱ 180,000

₱ 800,000

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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