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this is full one question The income statement for Huerra Company for last year is provided below. Sales tess: Variable expenses Contribution margin Less: Fixed

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this is full one question

The income statement for Huerra Company for last year is provided below. Sales tess: Variable expenses Contribution margin Less: Fixed expense Net operating income Less: Income taxes 30% Nat income Total $ 11,400,000 2,980,000 3,420,000 1,710,000 1,710,000 513,00 $1,197,000 Unit $ 228.00 159.50 68.40 34.20 34.28 10.26 $ 23.94 The company had average operating assets of $6.000.000 during the year. Required: 1. Compute the company's Rol for the period using the ROI formula stated in terms of margin and turnover (Round intern calculation to 2 decimal places. Enter your percentoge answer rounded to 2 decimal places (I.... 0.1234 should be ents 12.34). ROI 2. Consider each of the following questions separately and then compute the new ROI figure indicate whether the ROI will in decrease, or remain unchanged as a result of the events described. 2. Consider each of the following questions separately and then compute the new rol figure. Indicate whether the ROI will increase decrease, or remain unchanged as a result of the events described a. By using JIT, the company is able to reduce the average level of inventory by $600,000. (The released funds are used to pay off short-term creditors.) (Round intermediate calculation to 2 decimal places. Enter your percentage answer rounded to 2 decimal ploces (.e.. 0.1234 should be entered as 12.34)) ROI b. The company achieves a savings of $11 per unit by using cheaper materials (Round Intermediate and final answer to 2 decimal places.) ROI increase c. The company issues bonds and uses the proceeds to purchase machinery and equipment, thus increasing the average assets by S500,000. Interest on the bonds is $50,000 per year Sales remain unchanged. The new, more efficient equipment reducested production costs by 525,000 per year. (Round intermediate and final answer to 2 decimal places ROS d. As a result of a more intense effort by the sales staff, sales are increased by 25%. operating assets remain unchanged (Round Intermediate and final answer to 2 decimal places.) ROL 997 increase e. Obsolete itains of inventory carried on the records at a cost of $180,000 are scrapped and sold for 15 at the book value (Use tull amount of scrap while calculating averng operating 56015. Round intermediate calculation to 2 decimal places. Enter your percentage answer rounded to 2 decimal places de 0.1234 should be entered as 1234) ROS t. The company uses $600,000 in cash received on accounts receivable) to repurchase and retire some of its common shares. The net effect of this transaction is a $600,000 change in average operating assets. (Use full amount of scrap while calculating overnge operating assets. Round intermediate calculation to 2 decimal proces. Enter your percentage answer rounded to 2 decimal places [i.e., 0.1234 should be entered as 12.34):) RON g. The company pays a cash dividend to its shareholders, which results in a $100.000 change average operating assets Round intermediate calculation to 2 decimal places. Enter your percentage answer rounded to 2 decimal places. 0.1234 should be entered ns 12.34):) ROH

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