c) Return on investment is a crucial analytical tool used by both businesses and investors. It is [4%] the ratio of a profit or loss made in a fiscal year expressed in terms of an investment, and it is usually expressed in terms of a percentage of increase or decrease in the value of the investment during the year in question. The company Goodies Gift Shop is in its third year of operation in Small Town UK. Amelia Goodies, the owner, runs the shop with 4 full time employees, 2 part timers and herself. Her sales last year were 500,000 and her profit was 20,000 after taxes. See the Balance Sheet for year 2 below: Balance Sheet (Year 2) Current Assets: Cash Accounts Receivable Inventory Property and Equipment Total Assets Liabilities: Accounts Payable Loan Balance Owners Equity Total Liabilities and Equity 10,000 15,000 200,000 100,000 325,000 80,000

145,000 100,000 325,000 If her balance sheet shows a net worth of 100,000 what was her return on investment for last year?

Return on investment is a crucial analytical tool used by both businesses and investors. It i the ratio of a profit or loss made in a fiscal year expressed in terms of an investment, and it is usually expressed in terms of a percentage of increase or decrease in the value of the investment during the year in question. The company Goodies Gift Shop is in its third year of operation in Small Town UK. Amelia Goodies, the owner, runs the shop with 4 full time employees, 2 part timers and herself. Her sales last year were 500,000 and her profit was 20,000 after taxes. See the Balance Sheet for year 2 below: If her balance sheet shows a net worth of 100,000 what was her return on investment for last year