Shown below is the Profit & Loss Statement of start-up company THE PEANUT BETTER CO. Let us assume that all figures shown are average monthly projections. Their investment exactly 12 months ago from today was PHP133,000.00. THE PEANUT BETTER CO. ... Spreads & Breads "Online - Anytime - All The Time" Total Investment: 133,000.00 NET SALES 50,000.00 Less: Cost of Goods Sold 25,000.00 Gross margin 25,000.00 Less: Operating expenses 13,900.00 Less: Depriciation 500.00 Total Operating Expenses 15,000.00 Net Operating Profit 10,000.00 Less: Taxes 500.00 Net Profit After Taxes 9,500.00 Compute for the following: 1. How long will it take them to achieve ROI? 2. How much do they need to earn monthly to achieve ROI in 1 year?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
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Shown below is the Profit & Loss Statement of start-up company THE PEANUT BETTER CO. Let us assume that all figures shown
are average monthly projections. Their investment exactly 12 months ago from today was PHP133,000.00.
THE PEANUT BETTER CO.
Spreads & Breads
"Online - Anytime - All The Time"
Total Investment: 133,000.00
NET SALES
50,000.00
Less: Cost of Goods Sold
25,000.00
Gross margin
25,000.00
Less: Operating expenses
13,900.00
Less: Depriciation
500.00
Total Operating Expenses
15,000.00
Net Operating Profit
10,000.00
Less: Taxes
500.00
Net Profit After Taxes
9,500.00
Compute for the following:
1. How long will it take them to achieve ROI?
2. How much do they need to earn monthly to achieve ROI in 1 year?
Transcribed Image Text:Shown below is the Profit & Loss Statement of start-up company THE PEANUT BETTER CO. Let us assume that all figures shown are average monthly projections. Their investment exactly 12 months ago from today was PHP133,000.00. THE PEANUT BETTER CO. Spreads & Breads "Online - Anytime - All The Time" Total Investment: 133,000.00 NET SALES 50,000.00 Less: Cost of Goods Sold 25,000.00 Gross margin 25,000.00 Less: Operating expenses 13,900.00 Less: Depriciation 500.00 Total Operating Expenses 15,000.00 Net Operating Profit 10,000.00 Less: Taxes 500.00 Net Profit After Taxes 9,500.00 Compute for the following: 1. How long will it take them to achieve ROI? 2. How much do they need to earn monthly to achieve ROI in 1 year?
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