Question

Alyeska Services Company, a division of a major oil company provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales Net operating income Average operating assets $ 18,500,000 $ 4.800.00 $ 35,500,000 Required: 1. Compute the margin for Alyeska Services Company. (Round your answer to 2 decimal places.) 2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.) 3. Compute the return on investment (ROI) for Alyeska Services Company. (Round your Intermediate calculations and final answer to 2 decimal places.) 1. Margin 2. Turnover 3. ROI

Answer 1

Answer is given below with working notes

1 Margin 2 Turnover 3 ROI 25.95% 0.52 13.52% Working notes: Margin $4,800,000 25.95% Net Operating Income Sales $18,500,000 Turnover Sales Average Operating Assets $18,500,000 $35,500,000 0.52 ROI Net Operating Income Average Operating Assets $4,800,000 $35,500,000 13.52% Alternatively ROI Margin X Turnover 13.52% (25.95%*0.52)