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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

image text in transcribedimage text in transcribed 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) \begin{tabular}{lrrr} Sales & $33,700 & & $24,800 \\ Cost of goods sold & 21,905 & 16,864 \\ \cline { 4 - 4 } Gross profit & $11,795 & $7,936 \end{tabular} Expenses: \begin{tabular}{lrr} Wages & $8,800 & $6,189 \\ Utilities & 650 & 200 \\ Repairs & 170 & 325 \\ Selling & 506 & 300 \\ \cline { 2 - 2 } & $10,126 & $7,014 \end{tabular} Operating income ? ? Operating income \% ? Total assets (investment base) $4,400$1,600 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. B. Determine the operating income (loss) (percentage) for each year. If required round final answers to two decimal places. investment. Was the decision to invest additional assets in the company successful? If required round final answers to two decimal places. must enter subtractive or negative numbers use a minus sign. ResidualincomesCurrentYear Prior Year 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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