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Brief Exercise 25.2 (Static) Evaluate Business Performance Using ROI (LO25-2, LO25-3) Proctor Corporation has multiple facilities across the United States. Management evaluates each facility based
Brief Exercise 25.2 (Static) Evaluate Business Performance Using ROI (LO25-2, LO25-3) Proctor Corporation has multiple facilities across the United States. Management evaluates each facility based on the capital turnover ratio using the DuPont system. The following information pertains to the facility in Pennsylvania for the past year. Sales Operating expenses Total assets (prior to subtracting accumulated depreciation) Accumulated depreciation $ 6,300,000 2,940,000 10,500,000 656,250 a. Compute the capital turnover ratio using (1) total assets and (2) assets net of depreciation. b. Which investment base will the Pennsylvania factory manager prefer? Complete this question by entering your answers in the tabs below. Required A Required B Compute the capital turnover ratio using (1) total assets and (2) assets net of depreciation. Total assets 34 % Assets net of depreciation 32 % Required A Next > Brief Exercise 25.2 (Static) Evaluate Business Performance Using ROI (LO25-2, LO25-3) Proctor Corporation has multiple facilities across the United States. Management evaluates each facility based on the capital turnover ratio using the DuPont system. The following information pertains to the facility in Pennsylvania for the past year. Sales Operating expenses Total assets (prior to subtracting accumulated depreciation) Accumulated depreciation $ 6,300,000 2,940,000 10,500,000 656,250 a. Compute the capital turnover ratio using (1) total assets and (2) assets net of depreciation. b. Which investment base will the Pennsylvania factory manager prefer? Complete this question by entering your answers in the tabs below. Required A Required B Which investment base will the Pennsylvania factory manager prefer? Which investment base you will prefer? Net assets
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