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iren2701 [21]
3 years ago
15

The following information pertains to Lessor Company: Total assets $150,000 Total current liabilities 110,000 Total expenses 160

,000 Total liabilities 115,000 Total revenues 180,000 If invested capital is defined as total assets, a project earning an ROI of 12% should be _____.
Business
1 answer:
ipn [44]3 years ago
8 0

Answer:

Achieved. The ROI currently is 13.33% So the prohect earning a ROI of 12% was accomplished

Explanation:

Return on Investment will be  Income/ Investment Capital

Which in this case is defined as total assets.

So it would be<em> Income / Total Assets</em>

The last is a given figure: 150,000

Now <u>let's first find out the income:</u>

180,000 revenues - 160,000 expenses = 20,000 net income

Finally <em>calculate the </em><em>ROI</em>  20,000/ 150,000 = 13.33%

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If the beginning balance of the Accumulated Depreciation—Equipment account is $10,000 and an adjusting journal entry is recorded
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Answer:

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In this case, the beginning balance was $10,000 and the entry was $2,500

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