Loose Leaf for Financial Accounting: Information for Decisions
Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter C, Problem 14E

1.

Summary Introduction

Concept Introduction:

Return on assets/ investment is a profitability ratio that represents the percentage return on the investment made. It is calculated by dividing the Net Income by the Average total assets. The formulas to calculate the ROI are as follows:

  ROI= Operating income  ÷Average total assets

To calculate:the return on total assets for the current year for both the companies.

2.

Summary Introduction

Concept Introduction:

Return on assets/ investment is a profitability ratio that represents the percentage return on the investment made. It is calculated by dividing the Net Income by the Average total assets. The formulas to calculate the ROI are as follows:

  ROI= Operating income  ÷Average total assets

To indicate:the company which has used its assets more efficiently in the current year.

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Chapter C Solutions

Loose Leaf for Financial Accounting: Information for Decisions

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