a. Compute the rate of return on investment for each division. b. Which division is the most profitable per dollar invested?

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.4.13P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...
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The income from operations and the amount of invested assets in each division of Magentic
Zero Industries are as follows:

 

a. Compute the rate of return on investment for each division.
b. Which division is the most profitable per dollar invested? 

Income from
Operations
Invested Assets
Retail
343,200
1,320,000
Commercial Division
320,000
1,600,000
Internet Division
176,000
800,000
Transcribed Image Text:Income from Operations Invested Assets Retail 343,200 1,320,000 Commercial Division 320,000 1,600,000 Internet Division 176,000 800,000
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