Question
Requirement :1 Given the following data: Average operating assets $ 2,016,000 Total liabilities $ 151,200 Sales $ 1,008,000 Contribution margin $ 604,800 Net operating income
Requirement :1
Given the following data:
| Average operating assets | $ | 2,016,000 |
| Total liabilities | $ | 151,200 |
| Sales | $ | 1,008,000 |
| Contribution margin | $ | 604,800 |
| Net operating income | $ | 252,000 |
Return on investment (ROI) is:
Requirement:2
The following data has been provided for a companys most recent year of operations:
| Return on investment | 29 | % | |
| Average operating assets | $ | 90,000 | |
| Minimum required rate of return | 16 | % | |
The residual income for the year was closest to:
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Business Accounting Uk Gaap Volume 1
Authors: Frank Wood, Alan Sangster
1st Edition
0273718762, 9780273718765
