Question
9. Use the following information to compute values for each of the following items. Income from operations $120,000 Opportunity cost of labor $45,000 Net farm
9. Use the following information to compute values for each of the following items. Income from operations $120,000 Opportunity cost of labor $45,000 Net farm income $100,000 Opportunity cost of management 25,000 Interest expense 20,000 Opportunity interest rate 5% Average asset value 1,000,000 Nonfarm expenses 50,000 Average equity value 800,000 Income and SS taxes $22,000 Gross revenue $400,000 a. Rate of return on assets: 10% b. Rate of return on equity: 12.50% c. Operating profit margin ratio: 30 % d. Change in cost-basis equity $100,000 e. Return to management $__________
I only need help with the return to management letter E.
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