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# Accounting Rate of Return (ARR)

### Multiple choice questions

(I) Select the best answer from the following multiple choices: 1. If Division C has a 10% return of sales, income of \$500, and an investment turnover of 4 times, its ROI is a) 500% b) 100% c) 40% d) 10% 2. If income increase while sales and investment remain constant, which of the following is true? a) i

### How much can Mr. X afford to spend per month?

Mr. X who is 70 & ready to retire. Owns home, mortgage paid off. He has accumulated savings of \$100,000, invested yielding 9% interest & a \$10,000 savings account @ 5% interest. Savings account is for emergency expenses only. He would like to spend \$1,000 for living expenses and \$300 monthly for travel. To live he will rely

### Company Analysis

I'm trying to analyze a company's performance. I have the ratio's per year figured out, but there are still questions I have pertaining to the company. 1. Is the investment in accounts receivable decreasing? 2. Is the investment in plant assets increasing? 3. Is the owner's investment becoming more profitable?

### Economic student guide

If the price for umbrellas is price Inelastic, Then: a) Changes in price do not affect the number of umbrellas demanded. b) If more umbrellas are sold as the result of a price decrease, total expenditures by consumers on umbrellas will decrease. c) The percentage change in prices is less than the percentage change in quantity

### Accounting Analysis

Calculating NOI, sales figures, cost and return.

### ARR (average accounting return) for new manufacturing

You're trying to determine whether or not to expand your business by building a new manufacturing plant. The plant has an installment cost of \$12 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of \$1,627,000, \$1,512,000, \$1,101,000, and \$1,313,000 over the