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Proctor Corporation has multiple facilities across the United States. Management evaluates each facility based on the capital turnover ratio using the DuPont system. The following
Proctor Corporation has multiple facilities across the United States. Management evaluates each facility based on the capital turnover ratio using the DuPont system. The following information pertains to the facility in Pennsylvania for the past year.
Sales $ Operating expenses
Total assets prior to subtracting accumulated depreciation Accumulated depreciation. compute the ROI for the Pennsylvania facility using total assets and assets net of depreciation. Now find residual income if the company expects a percent return on total assets. Is the Pennsylvania facility performing up to manag ements expectations? Round your answers to the nearest whole percent.
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