Joy Home Fashions Reported a Return on Investment During the Year

question 40

Multiple Choice

Joy Home Fashions reported a return on investment during the year of 6 per cent and a profit margin of 12 per cent. What was the investment turnover for the year?

• A) 18%
• B) 50%
• C) 72%
• D) 20%

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Definitions:

Vertical Analysis

A financial analysis tool that compares each item in a financial statement to a base figure within the same statement, expressed as a percentage.

Operating Income

Income generated from a company's primary business operations, excluding revenue and expenses from non-operating activities such as investments.

Revenue

The total income generated by a business from its operational activities, such as sales of goods or services, before any expenses are deducted.

Accrued Revenue

Represents the income that has been earned but not yet billed or received by the company.