Calculating Average Operating Assets, Margin, Turnover, and Return on Investment East Mullett Manufacturing earned operating income...
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 | $531,250 |
| Cost of goods sold | 280,000 |
| Gross margin | $251,250 |
| Selling and administrative expense | 185,100 |
| Operating income | $66,150 |
| Less: Income taxes (@ 40%) | 26,460 |
| Net income | $39,690 |
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) | % |
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Calculating Average Operating Assets, Margin, Turnover, and
Return on Investment
East Mullett Manufacturing earned operating income...
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