ROI; RI The following information for the year is available for Leffingwell Industries: average assets invested, $16,400,000; sales, $31,400,000; and expenses, $27,600,000. a. Calculate return on investment. Note: Round percentage to one decimal point (i.e. round 4.555% to 4.6%). Answer

% b. Calculate profit margin. Note: Round percentage to one decimal point (i.e. round 4.555% to 4.6%). Answer% c. Calculate asset turnover. Note: Round amount to one decimal point (i.e. round 4.555 to 4.6). Answer d. Using (b) and (c), prove your answer to (a). Note: Use rounded amounts from earlier calculations except for ROI which is rounded to the nearest whole percentage.

Asset turnover	x	Profit margin	=	ROI
Answer	x	Answer	=	Answer

e. Assuming Leffingwells cost of capital is 14 percent, compute residual income. $Answer