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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%

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Answer:

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The Industrial Revolution marked the transition from doing things by hand to doing thm with machines. True False
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2 years ago
Identify the like terms.
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Answer:

Explanation:

7

+

5

−

9

+

2

−

1

2

7y+5x-9+2y-12x

7y+5x−9+2y−12x

Simplify

1

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7

+

5

−

9

+

2

−

1

2

{\color{#c92786}{7y}}+5x-9+{\color{#c92786}{2y}}-12x

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9

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5

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9

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1

2

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5 0
3 years ago
Your business has two branch stores. The recent physical inventory reports that the merchandise value for each store is: Store A
miv72 [106K]

Answer: Shrinkage for Store A ($40,890), Store B ($28,370)

Given:

Merchandise Value of Stores A and B

<span>A1 $454,385, and  B1 $586,855</span>

Book Value of Stores

<span>A2 $495,275, and  B2 $615,225</span>

Shrinkage<span> refers to the loss of inventory from whatever source.   </span>

Shrinkage for each store is computed as:

Book Value – Merchandise Value

Shrinkage for Store A

A2-A1

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$40,890

 

Shrinkage for Store B

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615,225-586,855

<span>$28,370</span>

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3 years ago
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