Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data

Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below:

Sales $ 17,500,000
Net operating income $ 5,600,000
Average operating assets $ 36,500,000

Required:

1. Compute the margin for Alyeska Services Company. (Round your answer to 2 decimal places.)

2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.)

3. Compute the return on investment (ROI) for Alyeska Services Company. (Round your intermediate calculations and final answer to 2 decimal places.)

CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:

Sales $ 3,560,000
Net operating income $ 284,800
Average operating assets $ 890,000

The following questions are to be considered independently.

Exercise 10-13 Part 3 (Algo)

3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,700,000 increase in sales, requiring a $162,000 increase in average operating assets, with a resulting $438,450 increase in net operating income. What would be the companys ROI in this scenario?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Cases An Active Learning Approach

Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt

2nd Edition

ISBN: 0130674842, 978-0130674845

More Books

Students also viewed these Accounting questions