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Balance Sheets Balanced Sheet: Beginning Balance Ending Balance Average Balance Assets Cash $ 150,000 $ 125,600 $ 137,800 Accounts receivable $ 180,000 100,000 140,000 Inventory

Balance Sheets
Balanced Sheet: Beginning Balance Ending Balance Average Balance
Assets
Cash $ 150,000 $ 125,600 $ 137,800
Accounts receivable $ 180,000 100,000 140,000
Inventory $ 240,000 120,000 180,000
Property, plant & equipment (net) $ 793,000 753,000 773,000
Other assets $ 37,000 37,000 37,000
Total assets $ 1,400,000 $ 1,135,600 $ 1,267,800
Liabilities & stockholders' equity
Accounts payable $ 80,000 40,000 $ 60,000
Bonds payable $ 550,000 250,000 400,000
Common stock $ 410,000 410,000 410,000
Retained earnings $ 360,000 435,600 397,800
Total liabilities & stocholders' equity $ 1,400,000 $ 1,135,600 $ 1,267,800
Edman Company
Income Statement
Sales $ 2,500,000
Variable expenses:
Cost of goods sold 1,600,000
Variable selling expense 240,000
Total variable expenses 1,840,000
Contribution margin 660,000
Fixed expenses:
Fixed selling expense 220,000
Fixed administrative expense 300,000
Total fixed expenses 520,000
Net operating income 140,000
Interest expense (8%) 32,000
Net income before tax 108,000
Tax expense (30%) 32,400
Net income $ 75,600

Give the following information, how do you find the margin, turnover, and return on investment?

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