14-04Pr_5e

14-04Pr_5e - Invested assets 3. Rate of return on = Profit...

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Problem 14-4 Name: Section: Score: 0% Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) will appear in the row immediately to the right of an incorrect answer. 1. Rate of return on = Profit margin x Investment turnover investment (ROI) Rate of return on = Income from operations x Sales investment (ROI) Sales Invested Assets Snowboard Division: ROI = x = 2. NEW WAVE RIDES INC.—SNOWBOARD DIVISION Estimated Income Statements For the Year Ended December 31, 2010 Proposal 1 Proposal 2 Proposal 3 Sales Cost of goods sold Gross profit Operating expenses Income from operations
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Unformatted text preview: Invested assets 3. Rate of return on = Profit margin x Investment turnover investment (ROI) Rate of return on = Income from operations x Sales investment (ROI) Sales Invested Assets Proposal 1: ROI = x = Proposal 2: ROI = x = Instructions Proposal 2: ROI = x = Proposal 3: ROI = x = 4. Proposal meeting the required rate of return: 5. Rate of return on investment (ROI) = Profit margin x Required investment turnover = x Required investment turnover Required investment turnover = Current investment turnover = Increase in investment turnover = (a 25% increase)...
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14-04Pr_5e - Invested assets 3. Rate of return on = Profit...

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