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Dynamic Software Company provide radar system for Australian Defense Force. They have reported the following results for the past quarter. Net Profit Before Tax $520,000

Dynamic Software Company provide radar system for Australian Defense Force. They have reported the following results for the past quarter.

Net Profit Before Tax $520,000

Sales Revenue $2,460,000

Invested Capital $4,250,000

The company's required rate of return is 8%.

  1. Calculate the following for Dynamic Software Company:

  1. Return on sales, show formulae and calculation to 2 decimal places. (2 marks)
  2. Investment Turnover, show formulae and calculation to 2 decimal places. (2 marks)
  3. Return on Investment, show formulae and calculation to 2 decimal places (2 marks)
  4. Residual income, show formulae and calculation to 2 decimal places (2 marks)

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