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The following financial information is provided for Some Company: Some Company Balance Sheet Beginning Balance Ending Balance Assets Cash $ 75,250 $ 83,500 Accounts receivable
The following financial information is provided for Some Company:
Some Company Balance Sheet | ||||||
Beginning Balance | Ending Balance | |||||
Assets | ||||||
Cash | $ | 75,250 | $ | 83,500 | ||
Accounts receivable | $ | 25,125 | $ | 23,695 | ||
Inventory | $ | 9,250 | $ | 10,350 | ||
Active Plant, Property & Equipment (gross) | $ | 375,000 | $ | 390,000 | ||
Accumulated Depreciation | $ | 225,000 | $ | 275,730 | ||
Undeveloped & Idle Buildings (gross) | $ | 250,000 | $ | 215,000 | ||
Accumulated Depreciation | $ | 25,000 | $ | 21,500 | ||
Investment in Different Company | $ | 13,500 | $ | 12,000 | ||
Total assets | $ | 498,125 | $ | 437,315 | ||
Liabilities and Stockholders' Equity | ||||||
Accounts payable | $ | 30,000 | $ | 37,350 | ||
Long-term debt | $ | 295,000 | $ | 295,000 | ||
Common Stock & Retained Earnings | $ | 173,125 | $ | 104,965 | ||
Total liabilities and stockholders' equity | $ | 498,125 | $ | 437,315 | ||
Some Company Income Statement | |||||||||
Revenues | $ | 813,351 | |||||||
Variable Expenses | $ | 398,542 | |||||||
Contribution Margin | $ | 414,809 | |||||||
Fixed Expenses | $ | 359,243 | |||||||
Net operating income | $ | 55,566 | |||||||
Interest and taxes: | |||||||||
Interest expense | $ | 15,000 | |||||||
Tax expense | $ | 30,000 | $ | 45,000 | |||||
Net income | $ | 10,566 | |||||||
The Investment in Different Company, on the balance sheet represents an investment in the stock of a another company.
Required:
1. What is Some Company's margin (aka return on sales)? (Round to the nearest whole percent)
2. What is the average value of Some Company's operating assets for this fiscal year?
3. What is Some Company's turnover (aka investment turnover)? (Round to 2 decimal places.)
4. What is Some Company's return on investment? (Round to the nearest whole percent.)
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