Examlex
The following information relates to the operating performance of two divisions of Sound Machine,Inc. ,for last year.
Required:
a.Compute the return on investment (ROI)of each division,using total assets at gross book value as the investment base.
b.Compute the ROI of each division,using total assets net of accumulated depreciation (net book value)as the investment base.
c.Which of the two measures do you think gives the better indication of operating performance? Explain your reasoning.
Ophthalmic Artery
The artery that supplies blood to the eyes and surrounding structures, originating from the internal carotid artery.
Pulmonary Circuit
The path of circulation between the heart and the lungs where blood is oxygenated.
Right Ventricle
The chamber of the heart that receives deoxygenated blood from the right atrium and pumps it into the pulmonary artery toward the lungs for oxygenation.
Ductus Arteriosus
A fetal blood vessel that connects the pulmonary artery to the aorta, allowing blood to bypass the lungs in utero, which normally closes shortly after birth.
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