Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 15-22 Return on investment LO 15-6 Rooney Corporation's balance sheet indicates that the company has $630,000 invested in operating assets. During 2018, Rooney earned

image text in transcribed
image text in transcribed
Problem 15-22 Return on investment LO 15-6 Rooney Corporation's balance sheet indicates that the company has $630,000 invested in operating assets. During 2018, Rooney earned operating income of $79,380 on $1,260,000 of sales. 229 Required a. Compute Rooney's profit margin for 2018. b. Compute Rooney's turnover for 2018. c. Compute Rooney's return on investment for 2018. d. Recompute Rooney's ROl under each of the following independent assumptions: () Sales increase from $1,260,000 to $1,512,000, thereby resulting in an increase in operating income from $79,380 to $90,720 2) Sales remain constant, but Rooney reduces expenses, resulting in an increase in operating income from $79,380 to $81,900 (3) Rooney is able to reduce its invested capital from $630,000 to $504,000 without affecting operating income Complete this question by entering your answers in the tabs below. Req A to C Reg D Compute Rooney's profit margin, turnover and return on investment for 2018. (Round "Profit margin" and "Return on investment to 1 decimal place.) a Proft margin b. Turnover c. Return on investment a. Compute Rooney's profit margin for 2018. b. Compute Rooney's turnover for 2018. c. Compute Rooney's return on investment for 2018. d. Recompute Rooney's ROl under each of the following independent assumptions (1) Sales increase from $1,260,000 to $1,512,000, thereby resulting in an increase in operating income from $79,380 to $90,720 (2) Sales remain constant, but Rooney reduces expenses, resulting in an increase in operating income from $79,380 to $81,900. (3) Rooney is able to reduce its invested capital from $630,000 to $504,000 without affecting operating income. Complete this question by entering your answers in the tabs below look Print Referencet Reg A to C Req D Recompute Rooney's ROT under each of the following independent assumptions: (Do not round intermediate calculations Round your answers to 2 decimal places. (i.e, 2345 should be entered as 23.45).) (1) Sales increase from $1,260,000 to $1,512,000, thereby resulting in an increase in operating income from $79,380 to $90,720 (2) Sales remain constant, but Rooney reduces expenses, resuiting in an increase in operating income from $79,380 to (3) Rooney is able to rejuce its invested capital from $630,000 to $504,000 without affecting operating income. $81,900. Show lesS Return on

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

Auditing And Society Research On Audit Practice And Regulations

Authors: Wally Smieliauskas, Minlei Ye, Ping Zhang

1st Edition

1138314129, 978-1138314122

More Books

Students also viewed these Accounting questions

Question

How is buying a car like and unlike vertical integration decisions?

Answered: 1 week ago