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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 Account receivable Inventory Plant Property Equipment Accumulated Depreciation- Equipment Sales Cogs Operating expenses Unearned Revenue Prepaid expense Tax Operating Assets of last year $ 24,500 8,560 6,800 150,000 280,000 65,000 22,000 480,000 210,000 100,000 15,300 8,000 25% $510.000 REQUIRED 1. Calculate the operating profit (EBIT) of the current year. 2. Calculate the operating assets of the current year. 3. Calculate the Average Operating Assets 4. Calculate the ROI using the information on the table 5. Find ROI using the two component method
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