The return on investments calculation considers only the following components: Sales Average Investment Net income Which of the following formulas best describes the return on investment calculation? 1. (Net Income / Sales) X (Sales / Net Income) 2. (Net Income / Sales) X (Salės / Average Investment) 3. (Average Investment / Sales) X (Net Income / Sales) 4. (Sales / Average Investment) X (Sales / Net Income)

The return on investments calculation considers only the following components: Sales Average Investment Net income Which of the following formulas best describes the return on investment calculation? 1. (Net Income / Sales) X (Sales / Net Income) 2. (Net Income / Sales) X (Salės / Average Investment) 3. (Average Investment / Sales) X (Net Income / Sales) 4. (Sales / Average Investment) X (Sales / Net Income)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 32MCQ

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Similar questions

Which of the following is NOT a profitability ratio? Select one:a. Return on Equityb. Net Profit Marginc. Return on Assetsd. Average Collection Period
Liquidity. The net profit / sales percentage measures which of the following? O Return on investment. O Risk. Profitability.
d. Calculate the Efficiency ratio which includes the sales to total assets ratio, operating return on assets, return on assets, ROA Model, return on equity, and ROE Model
Does the accounting (book) rate of return (ARR) method provide a valid (or, meaningful) measureof the return on investment? How about the investment’s internal rate of return (IRR)?
A. Which of the following is most closely associated with the cost of using assets? a. Asset utilization b. Sales revenue c. Proportion of debt and equity d. Average price B. Which of the following is most closely associated with the return on management’s use of assets? a. Cost of capital b. Mix of equity types c. Prime lending rate d. # of products sold
Which approach to investment analysis is "best" in terms of accounting for both the timing and amount of revenue streams from a potential investment? A. the payback period B. the simple rate of return C. the net present value D. the internal rate of return
c. Explain the following Investment ratios and indicate how they are computed:Earnings per share (EPS) and Price/Earnings ratio (P/E).
Which one of the following methods is based on net profit rather than cash flows? a. net present value b. payback c. internal rate of return d. accounting rate of return e. profitability index
In a DuPont analysis, what are the components of return on assets?a. Net Profit Margin Ratio and Debt Ratiob. Net Profit Margin Ratio and Leverage Ratioc. Net Profit Margin Ratio and Asset Turnover Ratiod. Asset Turnover Ratio and Leverage Ratio
Which one of the following is most closely related to the net present value profile? A: Payback B: Discounted payback C: Profitability index D: Average accounting return E: Internal rate of return
This calculation determines profitability or growth potential of an investment, expressed as a percentage, at the point where NPV equals zero. Group of answer choices A. internal rate of return (IRR) method B. net present value (NPV) C. discounted cash flow model D. future value method
Define each of the following terms: c. Net present value (NPV) method; internal rate of return (IRR) method;profitability index (PI)