Question

calculate ROI for 2017

resented here are the comparative balance sheets of Hames, Inc., at December 31, 2017 and 2016. Sales fo HAMES, INC., Balance Sheets December 31, 2017 and 2016 2017 2016 $ 20,000 78,000 103,000 $ 201,000 50,000 125,000 (65,000) $ 311,000 $ 21,000 72,000 99,000 $ 192,000 40,000 110,000 (60,000) $ 282,000 Assets Cash Accounts receivable Merchandise inventory Total current assets Land Plant and equipment Less: Accumulated depreciation Total assets Liabilities Short-term debt Accounts payable Other accrued liabilities Total current liabilities Long-term debt Total liabilities Stockholders' Equity Common stock, no par, 100,000 shares authorized 40,000 and 25,000 shares issued, respectively Retained earnings: Beginning balance Net income for the year Dividends for the year Ending balance Total stockholders' equity Total liabilities and stockholders' equity $ 18,000 64,400 20,000 $ 102,400 22,000 $ 124,400 $ 17,000 76,000 18,000 111,000 30,000 $ 141,000 $ 74,000 $ 59,000 $ 82,000 50,600 (20,000) $ 112,600 $ 186,600 $ 311,000 $ 85,000 2,000 (5,000) $ 82,000 $ 141,000 $ 282,000

Answer 1

Answer || ROI CRetuun on Investment) to 1 Reburo og Invertment is one of the most important ratio || 1D Ratid analysis. Retuin on Inverlment 15 the nation of" Det income divided by the quigvertiment made in the businesó ROI is the percentage of reluun of funds invested in a business by owners. It tells how much is the return that Jorgenciption Cares from the invested assets. It's formula is Return on .. Investment (ROI) = Net Income . x 100 Average Investment/ Total Assets FORT Return on Iqueshment (ROI) = Net Jowme X Sales Ixio I sales Allg. Investment ie z Profitablliby Ratio X Inventory Turnover

. Calulgton of ROI Crelan on Investment for 2017 of Homes 19€. Given, Net Inume for 2017 Total Investment Assets Total Investment /Assets 50600 311000 for 2017 for 2016 282000 Rebyun en fovestment X 100 Web Income - Average Total Assets CROI) for 2017 $ 50600 (311000 + 2162000 = + S0 600 X 100 296 50o _17.0657% 17.07% . Return on Investment (ROI) for 2017 of Hamer Inc is 17.07