Aloe Vera limited is a private company which is trying to evaluate the financial performance of the company. The management accounting department advised the management
Aloe Vera limited is a private company which is trying to evaluate the financial performance of the company. The management accounting department advised the management to use Return on Investment to carry out the exercise. Table below provides the data that could be used for the analysis
Data items $ Cash 24,500 Account receivable 10,560 Inventory 7,800 Plant 150,000 Property 280,000 Land for speculation 120,500 Equipment 65,000 Accumulated Depreciation- Equipment 22,000 Sales 325,000 Sales Discount 1200 Cogs 110,000 Operating expenses 60,000 Unearned Revenue 15,300 Prepaid expense 8,000 Accrued Expense 7600 Tax 15% Operating Assets of last year $510,000 REQUIRED 1. Calculate the operating profit (EBIT) of the current year. 2. Calculate the net income 3. Find the ROI for this investment. 4. What are the margin and the turnover of this investment. 5. Use the margin and the turnover to calculate the ROI
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