CASE STUDY Mr. Ramon Kwong, a businessman, was looking into some business ventures wherein he could possibly invest his money. He asked your help in evaluating the financial performance of two business ventures and gave you a copy of their income statements. Evaluate which of the two ventures is more profitable by computing for its operating ratio, profit ratio, return on owner's equity. Revenue for account services Revenue for cash services Collection from account clients Expenses incurred on account Expenses incurred for cash Average Owner's Equity Venture A Venture B 750,000 1,200,000 1,250,000 300,000 500,000 200,000 150,000 650,000 800,000 200,000 10,500,000 5,500,000 Questions: Which venture is more profitable? Just by looking at the cash collections and payments, which venture is more liquid?
CASE STUDY Mr. Ramon Kwong, a businessman, was looking into some business ventures wherein he could possibly invest his money. He asked your help in evaluating the financial performance of two business ventures and gave you a copy of their income statements. Evaluate which of the two ventures is more profitable by computing for its operating ratio, profit ratio, return on owner's equity. Revenue for account services Revenue for cash services Collection from account clients Expenses incurred on account Expenses incurred for cash Average Owner's Equity Venture A Venture B 750,000 1,200,000 1,250,000 300,000 500,000 200,000 150,000 650,000 800,000 200,000 10,500,000 5,500,000 Questions: Which venture is more profitable? Just by looking at the cash collections and payments, which venture is more liquid?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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