Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

تمرين 31

A Profit margin, investment turnover, and ROI
Cash Company has income from operations of $112,500, invested assets of $750,000, and sales of $1,875,000. Use the DuPont formula to compute the rate of return on investment and show (a) the profit margin, (b) the investment turnover, and (c) the rate of return on investment.
B Profit margin, Investment turnover, and ROI
Driggs Company has income from of $36,000, invested assets of $180,000, and sales of $720,000. Use the DuPont formula to compute the rate of return on investment and show (a) the profit margin, (b) the investment turnover, and (c) the rate of return on investment.