Question: Refer to the information for East Mullett Manufacturing above East Mullett

Refer to the information for East Mullett Manufacturing above.
East Mullett Manufacturing earned operating income last year as shown in the following income statement:
Sales ..................... $ 630,000
Cost of goods sold .............. 380,000
Gross margin ................ $ 250,000
Selling and administrative expense ......... 174,400
Operating income ............... $ 75,600
Less: Income taxes (@ 40%) .......... 30,240
Net income .................. $ 45,360
At the beginning of the year, the value of operating assets was $ 345,000. At the end of the year, the value of operating assets was $ 405,000.
Required:
Calculate
(1) Average operating assets,
(2) Margin,
(3) Turnover
(4) Return on investment.

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  • CreatedSeptember 22, 2015
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