Return on Investment Shown Below Are Selected Data from a Recent Annual Report

question 29

Essay

Return on investment
Shown below are selected data from a recent annual report of Quality Service.(Dollar amounts are in millions.) Compute for the year:
(a)Return on average total assets
(b)Return on average total equity

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Definitions:

Opportunity Cost

The benefit foregone by using an asset in a particular way. Usually the income or benefit it would produce in its next best use.

Cash Outflow

Money going out of a business or individual's account, typically to pay for expenses, investments, or acquisitions.

Net Working Capital

Net working capital refers to the difference between a company's current assets and its current liabilities.

Overhead Expenses

Ongoing business costs not directly tied to creating a product or service but necessary for running the business, such as rent, utilities, and administrative expenses.