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The following information provided by Golden Windows Inc on Dec.31 2018 . Sales 1,940,000 Operating expenses 980,000 Average Operating assets 3,950,000 Required Rate of Return
The following information provided by Golden Windows Inc on Dec.31 2018.
Sales | 1,940,000 |
Operating expenses | 980,000 |
Average Operating assets | 3,950,000 |
Required Rate of Return | 21% |
Instructions:
- Calculate Margin, Turnover and Return on Investment.
- Calculate Residual Income.
Silver Windows Inc. planning to increase Average Operating Assets $500,000 during 2019. The estimations of managerial accountant that this investment will increase Net Sales by 60% and Operating Expenses 20%. Do you recommend this investment? Show your calculations
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