Compute the Return on Investment (Rounded to Nearest Percent) for the Tim

question 77

Multiple Choice

Compute the return on investment (rounded to nearest percent) for the Tim Tom investment center as shown below.

• A) 21%
• B) 18%
• C) 15%
• D) 12%

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Definitions:

Disbursements

Payments made by a business, often involving cash outflows for operating expenses, purchasing assets, or repaying debt.

Minimum Cash Balance

The lowest amount of cash a company seeks to maintain in its accounts to ensure liquidity and cover short-term obligations.

Cash Budget

An estimation of cash inflows and outflows for a business or individual for a specific period.

Credit Sales

Sales made on terms that allow the buyer to pay the seller at a later date, typically recorded as accounts receivable.