(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
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
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?
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
Calculating NOI, sales figures, cost and return.
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