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please help me solve Problem 9-20A (Algo) Return on investment LO 9.2 Baird Corporation's balance sheet indicates that the company has $520,000 invested in operating
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Problem 9-20A (Algo) Return on investment LO 9.2 Baird Corporation's balance sheet indicates that the company has $520,000 invested in operating assets. During Year 2, Baird eatned operating income of $54,080 on $1,040,000 of sales. Required a. Compute Baird's profit margin for Year 2 b. Compute Baird's tumover for Year 2 c. Compute Baird's return on investment for Yeat 2 d. Recompute Baird's ROI under each of the following independent assumptions: (1) Sales increase from $1,040,000 to $1,248,000, thereby resuiting in an increase in operating income from $54,080 to $62,400. (2) Sales remain constant, but Baird reduces expenses, cesuiting in an increase in operating income from $54,080 to $56,160. (3) Baird is able to reduce its invested capital from $520,000 to $416.000 without affecting operating income Complete this question by entering your answers in the tabs below. Compute Baira's profit margin, turnover and return on investment for Year 2. Round profit margin" and "Return on investment' to 1 decimal pluce.) Problem 9-20A (Algo) Return on investment LO 9.2 Baird Corporation's balance sheet malicates that the corppany has 5520,000 invested in operating assets Duting Year.2. Baird earned operating income of 554,090 on 51,040,000 of sales Required a. Compute Bileds grotit margin for Year 2 b. Compute Baids timmover for Yeas 2 c. Compute Balrd's retum an investment for year 2. d. Fecompute Bairos RO under each of the following independent assumonions: (1) Saies increase from $1,040,000 to $1,248,000, thereby resulting in an incresse in operating income fram $54,090 to 562,400 (2) Sales remain constant, but 9aind reduces expenses, 1esuitang in. an incred 5 in operating income from $54,080 to $56,160 (3) Baird is able to reduce its lnvested captal from 5520000 to 5415,000 whe in operaing inctecting operating income. Complete this question by entering your answers in the tats belon. (2) Ealew rymain constant, but Caird reduces expenses, renuling in an increase lin eperating insome from 534,000 to (3) Raird if able to reduce ite ifivested eapital from is20,000 to 3416,000 nithout effecting operating incame Step by Step Solution
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