1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Tomtit [17]
3 years ago
14

Calculating Average Operating Assets, Margin, Turnover, and Return on Investment East Mullett Manufacturing earned operating inc

ome last year as shown in the following income statement: Sales $531,250 Cost of goods sold 280,000 Gross margin $251,250 Selling and administrative expense 195,500 Operating income $55,750 Less: Income taxes (@ 40%) 22,300 Net income $33,450 At the beginning of the year, the value of operating assets was $390,000. At the end of the year, the value of operating assets was $460,000. Required: For East Mullett Manufacturing, calculate the following: 1. Average operating assets $ 2. Margin (round to two decimal places) % 3. Turnover (round to two decimal places) 4. Return on investment (round to one decimal place)
Business
1 answer:
Nady [450]3 years ago
3 0

Answer:

1.  $425,000

2. 10.49%

3. 1.25

4. 13.11%

Explanation:

The computations are shown below:

1. For Average operating assets

=  (Beginning Operating Assets + Ending Operating Assets) ÷ 2

= (390,000 + 460,000) ÷ 2

= $425,000

2. For margin:

= Net Operating Income ÷ Sales × 100

= $55,750 ÷ $531,250 × 100

= 10.49%

3. For turnover:

= Sales ÷ Average Operating Assets

= $531,250 ÷ $425,000

= 1.25

4. For return on investment:

= Net Operating Income ÷ Average Operating Assets

= $55,750 ÷ $425,000

= 13.11%

You might be interested in
The number of years a person that age is expected to have left to live on average is known as?
aleksley [76]
Perhaps, life expectancy...  That may be your answer.

6 0
3 years ago
Read 2 more answers
You win a lottery with a prize of $1.5 million. Unfortunately the prize is paid in 10 equal annual installments. The first payme
EastWind [94]

The prize is really worth $1,006,512.21.

<h3>What is present value?</h3>

Present value is the sum of cash flows discounted at the rate of interest or the discount rate.  The annual cash flows for the next 10 years = $1.5 million / 10 = 150,000

The present value can be determined using a financial calculator

Cash flow from year 1 to 10 = $150,000

Discount rate = 8%

Present value = $1,006,512.21

Here is the complete question: You win a lottery with a prize of $1.5 million. Unfortunately the prize is paid in 10 an¬nual installments. The first payment is next year. How much is the prize really worth? The discount rate is 8 percent.

To learn more about present value, please check: brainly.com/question/25748668

3 0
2 years ago
As robin uses her computer to write a report of her team’s investigation she is struggling to keep the foot notes numbered in th
forsale [732]

It is advisable for Robin to use the word-processing software to enter footnotes to number them systematically.

<h3>What is a Word Processing Software?</h3>

The different computer programs, which are easily to be performed in the Word documents, is done with the help and assistance of a word processing software.

The functions of Word Processing Software are performed automatically and saves a lot of time and man-hours.

Hence, option B holds states about the word processing software. Complete question is attached in the image below for better understanding of the concept.

Learn more about the Word Processing Software here:

brainly.com/question/20910519

#SPJ1

8 0
2 years ago
Lowe’s learned that 25 percent of the time its customers buy a garden hose, they also purchase a sprinkler. Patterns and relatio
podryga [215]

Answer: Data mining

Explanation: Patterns and relationships as indicated are discovered through a technique known as data mining, which is defined as the use of a variety of statistical analysis tools in marketing research to uncover previously unknown patterns in data or relationships among variables. It is also given as a technique for searching large scale databases for patterns; used mainly to find previously unknown correlations between variables that may be commercially useful.

3 0
3 years ago
Read 2 more answers
What is the last step in planning your budget?
mote1985 [20]
C. review and revisions
7 0
3 years ago
Read 2 more answers
Other questions:
  • What is foreign portfolio investment?
    14·2 answers
  • Sarah tells jake that she is thinking about buying a car. jake replies that he would like to sell sarah one of his cars in a few
    13·1 answer
  • Blue Company reports the following costs and expenses in May.
    14·1 answer
  • You hold a diversified portfolio consisting of a $10,000 investment in each of 20 different common stocks (that is, your total i
    6·1 answer
  • Identify a few of the most recent times the Supreme Court was able to have a significant effect on the distribution of power bet
    12·1 answer
  • You are given the following information: Stockholders' equity as reported on the firm’s balance sheet = $4 billion, price/earnin
    15·1 answer
  • Present value​ (with changing interest​ rates).
    8·1 answer
  • Becky Knauer recently resigned from her position as controller for Shamalay Automotive, a small, struggling foreign car dealer i
    15·1 answer
  • What is a rat called?
    7·2 answers
  • Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expect
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!