Question
6. ROI & Investment Analysis Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands). Management's target
6. ROI & Investment Analysis
Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands). Management's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 35%.
| Sales | $ 10,000,000 |
| Operating income | 2,000,000 |
| Total assets | 2,500000 |
| Current liabilities | 820,000 |
What is the division's sales margin?
What is the division's sales Return on Investment?
What is the division's Capital Turnover?
What is the division's Residual Income?
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Auditing A Guide To Principles And Practice
Authors: J H Crowhurst
1st Edition
0304309052, 978-0304309054
