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hi there I really need your help with this Question 5 (11 marks) a) The income statement comparison for Rush Delivery Company shows the income

hi there I really need your help with this

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Question 5 (11 marks) a) The income statement comparison for Rush Delivery Company shows the income statement for the current and prior year. Current Year Prior Year {Amounts in thousands} Sales Cost of goods sold Gross prot Wages Utilities Repairs Selllng Total expenses $1 5,000 9,750 $5.250 53.900 300 75 225 $4,500 $1 1 .000 7,480 $3.520 $3,080 250 325 200 $3,855 Operating income-moss] Operating incomeloss] 95 Total assets (investment base} Return on investment Residual income (8% cost of capital) Required: a) Determine the operating income {loss} for each year. (2 marks] b} Determine the operating income (96 of sales) for each year. (2 marks) c) The company made a strategic decision to invest in additional assets in the current year. These amounts are provided. Using the total assets amounts as the investment base, calculate the ROI. Was the decision to invest additional assets in the company successful? Explain. (3.5 marks] d} A55uming an 8% cost of capital, calculate the RI for each year. Explain how this compares to your findings in (c). (3.5 marks) SHOW YOUR WORKING

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