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    Mary Anne Mosedeil
    12 views2 pages
    The document discusses key financial metrics for evaluating business performance including return on investment (ROI), turnover, earnings, sales, cost of sales, total investment, current assets, and fixed assets. It provides formulas for calculating ROI as the product of turnover and earnings divided by sales, and defines turnover as sales divided by total investment. Cost of sales is defined as variable production costs plus selling expenses, freight, and administrative costs.

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    10667473

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    The document discusses key financial metrics for evaluating business performance including return on investment (ROI), turnover, earnings, sales, cost of sales, total investment, current assets, and fixed assets. It provides formulas for calculating ROI as the product of turnover and earnings divided by sales, and defines turnover as sales divided by total investment. Cost of sales is defined as variable production costs plus selling expenses, freight, and administrative costs.

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    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
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    12 views2 pages

    Solution 1

    Uploaded by

    Mary Anne Mosedeil
    The document discusses key financial metrics for evaluating business performance including return on investment (ROI), turnover, earnings, sales, cost of sales, total investment, current assets, and fixed assets. It provides formulas for calculating ROI as the product of turnover and earnings divided by sales, and defines turnover as sales divided by total investment. Cost of sales is defined as variable production costs plus selling expenses, freight, and administrative costs.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Solution-1

    -5

    2
    -1

    Turnover
    (T)

    -1
    T = S / TI
    2

    Cost of Sales
    (CS)

    C = MC + SC + FC + AC

    Solution-2
    Return on Investment (ROI)
    ROI = Turnover(T) * Earnings (E )
    Cost of Sales(CS) = Variable production cost + Selling expenses + freight + delivery cost + administrative cost
    Total Investment = Current Assests (CA) + Fixed Assests (FA)
    Earnings = Sales (S) - Cost of sales (CS)
    Turnover = Sales(S) / Total Investment (TI)
    ROI = (Sales(S) / Total Investment(TI)) * Earnings (E)
    Variables:
    Turnover
    ROI = T * E / S Earnings
    Sales
    Return on Total Investment
    Investment
    (ROI) Current Assets
    Fixed Assets
    Cost of Sales

    Total
    nover Investments
    T) (TI)

    TI = CA + FA

    Earnings
    Sales (E)
    S)

    C + FC + AC E=S-C

    Sales
    (S)

    ery cost + administrative cost

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