Ratio Analysis: Consolidated Financial Statements $\$$ Million -Based on the Above Same Table,what Are the ROICs for

question 13

Multiple Choice

Ratio Analysis: Consolidated Financial Statements
$\$$ million
$\begin{array}{lrrr} & \text { Company A } & \text { Company B } & \text { Company C } \\\hline \text { Income statement } & & & 150 \\\text { Operating profit } & 120 & 100 & (20) \\\text { Interest } & 0 & 0 & 130 \\\text { Earnings before taxes } & 120 & 100 & (33) \\\text { Taxes } & (30) & (25) & (33) \\\text { net income }&90&75&98\\ \text {Operating tax rate }&25.0 \% & 25.0 \% & 25.0 \%\\ \text { Balance sheet}\\\text { Inventory } & 125 & 100 & 150 \\\text { Property, plant, and equipment } & 400 & 400 & 365\\\text { Equity investments } & 0 & 50 & 0 \\\text { Total assets } & 525 & 550 & 515\\\text { Accounts payable } & 50 & 50 & 50 \\\text { Debt } & 0 & 0 & 190\\\text { Equity } & 475 & 500 & 275 \\\text { Liabilities and equity } & 525 & 550 & 515\\\end{array}$
-Based on the above same table,what are the ROICs for Companiesy A,B,and C,respectively?

• A)18 percent,12 percent,19 percent.
• B)19 percent,17 percent,21 percent.
• C)18 percent,16 percent,20 percent.
• D)19 percent,17 percent,24 percent.

---

Definitions:

Eligible Voters

Individuals who meet the legal requirements to vote in a particular election or referendum, typically based on citizenship, residency, and age.

Voluntary Response Bias

The bias in results that occur when participants in research self-select to participate, potentially leading to non-representative samples.

Cereal Manufacturer

A company or entity that specializes in producing and distributing cereal products for consumption, often involving various grains.

All-Expense Paid

A term indicating that all related costs and expenses are included in the price, often used for vacations or promotions.