Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need Help Quick! Zachary Corporation's balance sheet indicates that the company has $690,000 invested in operating assets. During the year, Zachary earned operating income of

image text in transcribedNeed Help Quick!

Zachary Corporation's balance sheet indicates that the company has $690,000 invested in operating assets. During the year, Zachary earned operating income of $95,220 on $1,380,000 of sales. Required a. Compute Zachary's profit margin for the year. b. Compute Zachary's turnover for the year. c. Compute Zachary's return on investment for the year. d. Recompute Zachary's ROl under each of the following independent assumptions: (1) Sales increase from $1,380,000 to $1,656,000, thereby resulting in an increase in operating income from $95,220 to $107,640. (2) Sales remain constant, but Zachary reduces expenses, resulting in an increase in operating income from $95,220 to $97,980. (3) Zachary is able to reduce its invested capital from $690,000 to $552,000 without affecting operating income. Complete this question by entering your answers in the tabs below. Compute Zachary'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).)

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

Step: 3

blur-text-image

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

Global Financial Accounting And Reporting Principles And Analysis

Authors: Peter Walton, Walter Aerts

1st Edition

1844802655, 9781844802654

More Books

Students also viewed these Accounting questions

Question

=+b) In which application is a larger length used?

Answered: 1 week ago

Question

Should civil service employees be allowed to unionize? Why?

Answered: 1 week ago