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C D F At the end of the fiscal year Zeta Tube performs an analysis comparing current year income statement to prior your income statement.

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C D F At the end of the fiscal year Zeta Tube performs an analysis comparing current year income statement to prior your income statement. The income statement comparison for Forklift Material Handling shows the income statement for the current and prior year. A In dollars, calculate the operating income (loss) for each year. B. Calculate the operating income (percentage) for each year. C. Calculate the Return on Investment for each year. 12 (Amount in thousands) Current Year Prior Year Sales 33,750 $ 24,750 Cost of goods sold S 21.938 5 16,830 Gross Profit 11,812 S 7,920 17 Wages 8.775 5 6,188 Utilities 675 250 Repairs 169 325 Selling 506 200 Total expenses 10.125 6.963 Operating income Operating income % Total assets (investment base) $ 4 500 1,500 Retum on investmentD. Zeta Tube determines that an 8% cost of capital is appropriate. Calculate the residual income for prior and current year. Explain how this compares to your findings in (C). Type your response here

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