Question
company has the following operating data for the past 2 years: Year 1 Year 2 Residual Income $600 ? Return on Investment 10% 87.5% Required
company has the following operating data for the past 2 years:
| Year 1 | Year 2 | |
| Residual Income | $600 | ? |
| Return on Investment | 10% | 87.5% |
| Required Rate of return | 8% | 9% |
| Average operating assets | ? | $42,000 |
Sales in year 1 is $70,000 less than sales in year 2.
The Company had the same capital turnover in both years.
Q.) What is the sales margin in Year 2
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Montgomerys Auditing Classic Reprint Series
Authors: Robert Hiester Montgomery
1st Edition
1390439356, 978-1390439359
