Proctor Corporation has multiple facilities across the United States. Management evaluates each facility based on the capital turnover ratio using the DuPont system. The following information pertains to the facility in Pennsylvania for the past year. Sales$6,300,000 Operating expenses 2,940,000 Total assets (prior to subtracting accumulated depreciation) 10,500,000 Accumulated depreciation 656,250.

a. Compute the ROI for the Pennsylvania facility using total assets and assets net of depreciation. 

b. Find residual income if the company expects a 30 percent return on total assets. 

c. Is the Pennsylvania facility performing up to management’s expectations?

Answer rating: 100% (QA)

a ROINET PROFITINVESTMENT100 sales 360000000 lessoperating ... View the full answer