Calculating Average Operating Assets, Margin, Turnover, and Return on Investment East Mullett Manufacturing earned operating income...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Calculating Average Operating Assets, Margin, Turnover, and Return on Investment East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales Cost of goods sold $531,250 280,000 Gross margin $251,250 Selling and administrative expense 196,300 Operating income $54,950 21,980 $32,970 Less: Income taxes (40%) Net income 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) LUD % % Calculating Average Operating Assets, Margin, Turnover, and Return on Investment East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales Cost of goods sold $531,250 280,000 Gross margin $251,250 Selling and administrative expense 196,300 Operating income $54,950 21,980 $32,970 Less: Income taxes (40%) Net income 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) LUD % %
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
The below simply - supported beam has a unit - length mass / b a r ( m ) , bending stiffness E I , span length L , and no damping. A constant force p ( t ) = p 0 moves from the left end to the right...
-
Below are three examples of misleading Statistics. Your assignment is to find (web search is acceptable) and submit another such example and briefly explain why you think it's misleading. Example 1:...
-
A financial manager needed to hedge against an unexpectedly large increase in short-term interest rates. She decided to hedge this risk exposure by going long on a forward rate agreement (FRA) that...
-
A certain university has decided to introduce the use of plus and minus with letter grades, as long as there is evidence that more than 60% of the faculty favor the change. A random sample of faculty...
-
Gas held within a chamber passes through the cycle shown in Figure. Determine the energy transferred by the system as heat during process CA if the energy added as heat QAB during process AB is 20.0...
-
How do guidelines treat the situation where an obligor wants to pay less to his first family because he now has a second family with minor children?
-
Describe the effect on the financial statements when an adjustment is prepared that records (a) unrecorded revenue and (b) unrecorded expense. LO11
-
Harwood Company uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that the company would incur...
-
\f
-
A student at a university explains that he doesn't want to join a fraternity because he belives they create negative in group and out group dynamics. What perspective best describes his views
-
What are some of the reasons that return on U.S. Treasury bills should not be used as the discount rate in valuation of a business?
-
Give some examples of how income in accounting terms can be different from cash flow.
-
Find a recent article on cash flow in a business magazine or on the Internet. What recommendations are made to improve cash flow?
-
What are the advantages and disadvantages of equity compensation methods?
-
A privately held business has the same EBITDA as a publicly traded one. It is assumed that the liquidity discount is 25 percent. What theoretically should be the value of the privately held business...
-
Genetic Insights Co. purchases an asset for $15,386. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are...
-
(a) Use integration by parts to show that (b) If f and g are inverse functions and f' is continuous, prove that (c) In the case where f and t are positive functions and b > a > 0, draw a diagram to...
-
Bond Features Define the following terms related to bonds payable. Debenture bonds Secured bonds Convertible bonds Callable bonds Face value of the bonds Face rate of interest Issue price
-
Do you agree with this statement: All liabilities could be legally enforced in a court of law? (Appendix)
-
Effect of Bond Issuance A bond with a face value of $10,000 is issued at a discount of $800 on January 1, 2008. The face rate of interest on the bond is 7%. Required 1. Was the market rate at the...
Study smarter with the SolutionInn App