Consider the following information for HandyCraft Stores for 2011 and 2012. Required a. Compute ROI for both

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Consider the following information for HandyCraft Stores for 2011 and 2012.

2011 2012 $45,000,000 $51,300,000 Total assets Noninterest-bearing current liabilities $4,500,000 $4,000,000 $4,500,000

Required

a. Compute ROI for both years.

b. Break ROI down into profit margin and investment turnover.

c. Comment on the change in financial performance between 2011 and 2012.

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Managerial Accounting

ISBN: 978-0470578797

4th edition

Authors: James Jiambalvo

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Question Posted: May 14, 2012 01:47 AM

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Consider the following information for HandyCraft Stores for 2011 and 2012. Required a. Compute ROI for both

Question:

2011 2012 $45,000,000 $51,300,000 Total assets Noninterest-bearing current liabilities $4,500,000 $4,000,000 $4,500,000 Net income $3,500,000 Interest expense $2,200,000 $2,700,000 Sales $60,000,000 $87,500,000 40% Tax rate 40%

Step by Step Answer:

a 2011 2012 Invested capital 41000000 45000000 4000000 46800000 Tax rate 40 40 ...View the full answer

Managerial Accounting

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