LKAssignment

ROI

Aloe Vera limited is a private company which is trying to evaluate the financial performance of the company. The management accounting department advised the management to use Return on Investment to carry out the exercise. Table below provides the data that could be used for the analysis

Data items	$
Cash	24,500
Account receivable	10,560
Inventory	7,800
Plant	150,000
Property	280,000
Land for speculation	120,500
Equipment	65,000
Accumulated Depreciation- Equipment	22,000
Sales	325,000
Sales Discount	1200
Cogs	110,000
Operating expenses	60,000
Unearned Revenue	15,300
Prepaid expense	8,000
Accrued Expense	7600
Tax	15%
Operating Assets of last year	$510,000

REQUIRED

1. Calculate the operating profit (EBIT) of the current year.

2. Calculate the net income

3. Find the ROI for this investment.

4. What are the margin and the turnover of this investment.

5. Use the margin and the turnover to calculate the ROI