Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Problem 15-22A (Algo) Return on investment LO 15-6 Zachary Corporation's balance sheet indicates that the company has $690,000 invested in operating assets. During the

image text in transcribed

Problem 15-22A (Algo) Return on investment LO 15-6 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 ROI 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. Reg A to C Reg Compute Zachary's profit margin, turnover and return on investment for the year. (Round "Profit margin" and "Return on investment to 1 decimal place (ie., 0.234 should be entered as 23.4).) a. Profit margin b. Turnover c Return on investment times %6 CRA to C Req D >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Intermediate accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson

7th edition

978-0077647094

Students also viewed these Accounting questions

Question

Briefly explain the different redlining and revise redllining

Answered: 1 week ago