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10.00 points Fleetwood Company recently had a computer malifunction and lost a portion of its accounting records. The company

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Answer #1
Return on investment Profit margin Investment Turnover
a (6.35) % 4.7 % 1.35
14.4 % b (5.76) % 2.5
4 % 4.1 % d (0.976)
23.8 % c (47.6) % 0.5
Return on investment = Net income / Investment
Profit margin = Net income (i.e. Profit)/ Sales
Investment Turnover = Sales / Average investment
a Profit margin * Investment turnover = Net income / Sales * Sales / Average investment = Net income / Average investment = Return on investment
Return on investment = Profit margin * Investment turnover = 4.7% * 1.35 = 6.35%
b Return on investment * 1/Investment turnover = Net income / Investment * Investment / Sales = Net income / Sales = Proft margin
Profit margin = Return on investment / Investment turnover = 14.4% / 2.5 = 5.76%
c Return on investment * 1/Investment turnover = Net income / Investment * Investment / Sales = Net income / Sales = Proft margin
Profit margin = Return on investment / Investment turnover = 23.8%/0.5 = 47.6%
d Return on investment * 1/Profit margin = Net income / Investment * Sales / Net income = Sales / Investment = Investment turnover
Investment turnover = Return on investment / Profit margin = 4.00%/4.1% = 0.976
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