Question

e some of its finance perfomance measurements including components of the retum Kral Company recently had a computer anson and lost a portion of its accounting records. The company has mor on investment calculations at a portion of its accounting records. The Required Help Kral rebuild its information database by completing the following : Do not found your und your final i s .234 should travestment Operating 0000 Hae 10000 100 152.700.000.00

Answer 1

Return on Investment = Operating Income / Average Invested Assets x 100
Profit Margin = Operating Income / Sales Revenue x 100
Investment Turnover = Sales Revenue / Average Invested Assets

Row 1
Return on Investment = $36000 / $1480000 x 100 = 2.43%
Profit margin = $36000 / $701000 x 100 = 5.14%
Asset Turnover = $701000 / $1480000 = 0.47

Row 2
Return on Investment = $120265 / $2700000 x 100 = 4.45%
Sales Revenue = $2700000 x 0.45 = $1215000

Row 3
Average Invested Assets = $2494000 / 1.45 = $1720000
Operating Income = $2494000 x 15.60% = $389064
Return on Investment = $389064 / $1720000 x 100 = 22.62%

Row 4
Average Invested Assets = $501000 / 2.40 = $208750
Operating Income = $208750 x 12.30% = $25676
Profit Margin = $25676 / $501000 x 100 = 5.13%