Phone Screens and Computer Screens are two divisions operated as investment centres of Siciliano Ltd. Management wants

Question:

Phone Screens and Computer Screens are two divisions operated as investment centres of Siciliano Ltd. Management wants to know which of the two earned the highest return on investment for the year ended 30 June 2017. The details for each division for the year ended 30 June 2017 were as follows:



Phone Screens


Computer Screens

Sales revenue

Interest expense

Profit before tax

Assets 1 July 2016

Assets 30 June 2017

$2000000

40000

240000

1000000

1500000


$2500000

80000

360000

1 800000

1600000


Required

Calculate the return on investment for each division.

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Accounting

ISBN: 978-1118608227

9th edition

Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett

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