The income statement comparison for Forklift Material Handling shows the income statement for the current and prior year FORKLIFT MATERIAL HANDLING Income statement Comparison Current Year Prior Year (Amounts in thousands) Sales $33,700 $24,800 Cost of goods sold 21,905 16,864 Gross profit $11,795 $7,936 Expenses Wages $8,775 $6,188 Utilities 650 300 Repairs 170 350 Selling 507 200 Total Expenses $10,102 $7,038 Operating income Operating income Total assets (investment base) $4,600 $1,400 Return on investment Residual income (8 cost of capital) A Determine the operating income (loss) (dollars) for each year If required round final answers to two decimal places Current Year Prior Year Operating income (loss) $fill in the blank 1 $fill in the blank 2 B Determine the operating income (loss) (percentage) for each year If required round final answers to two decimal places Current Year Prior Year Operating income (loss) fill in the blank 3 fill in the blank 4 c The company made a strategic decision to invest in additional assets in the current year These amounts are provided Using the total assets amounts as the investment base, calculate the return on investment Was the decision to invest additional assets in the company successful If required round final answers to two decimal places Current Year Prior Year Return on investment fill in the blank 5 fill in the blank 6 D Assuming an 8 cost of capital, calculate the residual income for each year Do not round intermediate computations and round final answers to nearest whole dollar For those boxes in which you must enter subtractive or negative numbers use a minus sign Current Year Prior Year Residual income $fill in the blank 8 $fill in the blank 9 The residual income related to the investment in the current year This with the ROI results Management consider both methods in their analysis of the investment

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The income statement comparison for Forklift Material Handling shows the income statement for the current and prior year. FORKLIFT MATERIAL HANDLING Income statement Comparison Current

The income statement comparison for Forklift Material Handling shows the income statement for the current and prior year.

FORKLIFT MATERIAL HANDLING Income statement Comparison
	Current Year	Prior Year
(Amounts in thousands)
Sales	$33,700	$24,800
Cost of goods sold	21,905	16,864
Gross profit	$11,795	$7,936
Expenses:
Wages	$8,775	$6,188
Utilities	650	300
Repairs	170	350
Selling	507	200
Total Expenses	$10,102	$7,038

Operating income	?	?
Operating income %	?	?
Total assets (investment base)	$4,600	$1,400
Return on investment	?	?
Residual income (8% cost of capital)	?	?

A. Determine the operating income (loss) (dollars) for each year. If required round final answers to two decimal places.

	Current Year		Prior Year
Operating income (loss)	$fill in the blank 1		$fill in the blank 2

B. Determine the operating income (loss) (percentage) for each year. If required round final answers to two decimal places.

	Current Year		Prior Year
Operating income (loss)	fill in the blank 3%		fill in the blank 4%

c. The company made a strategic decision to invest in additional assets in the current year. These amounts are provided. Using the total assets amounts as the investment base, calculate the return on investment. Was the decision to invest additional assets in the company successful? If required round final answers to two decimal places.

	Current Year		Prior Year
Return on investment	fill in the blank 5%		fill in the blank 6%

D. Assuming an 8% cost of capital, calculate the residual income for each year. Do not round intermediate computations and round final answers to nearest whole dollar. For those boxes in which you must enter subtractive or negative numbers use a minus sign.

	Current Year		Prior Year
Residual income	$fill in the blank 8		$fill in the blank 9

The residual income related to the investment in the current year. This with the ROI results. Management consider both methods in their analysis of the investment.