Question

1. The net income of XYZ Ltd is 10,20,000 and sales for the year are 70 lakh.
The total investment in the business amounts to 90 lakh. Find out the return on
investments for XYZ Ltd.​

Answer 1

Explanation:

The net income of XYZ Ltd is the total net income - total investment by industry

Answer 2

The value of the return on investments for XYZ Ltd. Is 11.33.

Step by step Explanation:

Given:

The net income of XYZ Ltd is 10,20,000.

Sales for the year are 70 lakh.

The total investment in the business amounts to 90 lakh.

To Find:

The value of the return on investments for XYZ Ltd.

Formula Used:

Return On Investment of XYZ Ltd. =Net Income of XYZ Ltd. /Total Investment  of XYZ Ltd. x100

Solution:

Return On Investment for XYZ Ltd.$=\frac{Net\ Income\ of\ XYZ\ Ltd.}{Total\ Investment\ of\ XYZ\ Ltd.} \times100$

                                                           $=\frac{10,20.000}{90,00,000} \times100$

                                                           $=11.33$

Thus, the value of the return on investments for XYZ Ltd.is 11.33.