98) The Hooper Company has gathered the following information:

Revenue$  500,000

Expenses300,000

Total assets1,000,000

Total current liabilities200,000

Total liabilities400,000

Compute:

a.ROI assuming invested capital is equal to total assets.

b.ROI assuming invested capital is equal to total assets minus current liabilities.

c.ROI assuming invested capital is equal to stockholders’ equity.

99) The Duncan Company provided the following information:

Cost of machine$600,000

Life in years3 yrs.

Residual valuezero

Amortization methodstraight-line

The operating income before amortization during each of the three years the machine was in use was $300,000.

Compute:

a.the rate of return on the average investment for each of the three years using the net book value.

b.



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