Question

LET Company’s financial results for the past two years follow.


Required
1. Compute the company’s profit margin, asset turnover, and return on investment for this year and last year. Beginning total assets for last year were $160,000. (Round percentages to two decimal places.)
2. The desired return on investment for the company has been set at 10 percent. Compute LET’s residual income for this year and last year.
3. The cost of capital for the company is 5 percent. Compute the company’s economic value added for this year and last year.
4. Before drawing conclusions about this company’s performance, what additional information would youwant?


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  • CreatedMarch 26, 2014
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