Refer to the information for Barnard Manufacturing on the previous page. Round answers to two decimal places.
Question:
Refer to the information for Barnard Manufacturing on the previous page. Round answers to two decimal places.
Barnard Manufacturing earned operating income last year as shown in the following income statement:
Sales...............................................$4,000,000
Cost of goods sold................................2,100,000
Gross margin......................................$1,900,000
Selling and administrative expense.............1,100,000
Operating income.................................$ 800,000
Less: Income taxes (@ 40%)......................320,000
Net income........................................$ 480,000
At the beginning of the year, the value of operating assets was $2,700,000. At the end of the year, the value of operating assets was $2,300,000.
Required:
Calculate
(1) Average operating assets,
(2) Margin,
(3) Turnover,
(4) Return on investment.
Step by Step Answer:
Managerial Accounting The Cornerstone of Business Decision Making
ISBN: 978-1337115773
7th edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger