An asterisk (*) will appear to the right of an incorrect entry in the income statement and above or below
elements in the equations.
1.
Rate of Return (ROI) on Investment = Profit Margin x Investment Turnover
Sales
Commercial Division:
2.
Proposal 1 Proposal 2 Proposal 3
Sales
Cost of goods sold
Gross profit
Operating expenses
Income from operations
Invested assets
3.
Rate of Return (ROI) on Investment = Profit Margin x Investment Turnover
Sales
Proposal 1:
Proposal 2:
Proposal 3:
4.
meet(s) the required 21% rate of return on investment.
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 =
Invested Assets
ROI
=
x
=
Rate of Return (ROI) on Investment
=
Income from Operations
[Key code here]
Answers are entered in the cells with gray backgrounds.
Cells with non-gray backgrounds are protected and cannot be edited.
Sales
Invested Assets
x
x
Sales
Name:
Section:
Score:
Key Code:
Instructions
For the Year Ended December 31, 2014
Rate of Return (ROI) on Investment
=
Income from Operations
0%
MAXELL MANUFACTURING INC.⎯COMMERICAL DIVISION
Estimated Income Statements
ROI
=
ROI
=
ROI
=
=
x
=
x
=
x
An asterisk (*) will appear to the right of an incorrect entry in the income statement and above or below
elements in the equations.
1.
Rate of Return (ROI) on Investment = Profit Margin x Investment Turnover
Sales
Commercial Division:
Problem 24-4A
Name:
Solution
Section:
ON
Cells with non-gray backgrounds are protected and cannot be edited.
Score:
Instructions
Answers are entered in the cells with gray backgrounds.
Rate of Return (ROI) on Investment
=
Income from Operations
x
Sales
Invested Assets
Sales
Invested Assets