Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Finch Corporation's balance sheet indicates that the company hos $560,000 invested in operating assets. During the year Finch earned operating income of $62,720 on $1120,000

image text in transcribed
Finch Corporation's balance sheet indicates that the company hos $560,000 invested in operating assets. During the year Finch earned operating income of $62,720 on $1120,000 of sales. Required a. Compute Finch's profit margin for the year, b. Compute Finch's turnover for the year, c. Compute Finch's return on investment for the year d. Recompute Finch's ROI under each of the following independent assumptions: (1) Sales increase from $1,120,000 to $1,344,000, thereby resulting in an increase in operating income from $62,720 to $67,200. (2) Sales remain constant, but Finch reduces expenses, resulting in an increase in operating income from $62,720 to $64,960. (3) Finch is able to reduce its invested capital from $560,000 to $448,000 without affecting operating income, Complete this question by entering your answers in the tabs below. es Reg AtoC Reg D Compute Finch's profit margin, turnover and return on investment for the year. (Round "Profit margin" and "Return on Investment to 1 decimal place (I.e., 0.234 should be entered as 23.4). a. Profit margin b. Tumover c. Return on investment times % Ras Ato RegD >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Mcgraw Hill 36 Hour Course In Finance For Non Financial Managers

Authors: Robert Cooke

2nd Edition

0071425462, 978-0071425469

More Books

Students also viewed these Accounting questions