Thornton Corporation's balance sheet indicates that the company has $660,000 invested in operating assets. During the year, Thornton earned operating income of $87,120 on $1,320,000 of sales. Required a. Compute Thornton's profit margin for the year. b. Compute Thornton's turnover for the year. c. Compute Thornton's return on investment for the year. d. Recompute Thornton's ROl under each of the following independent assumptions: (1) Sales increase from $1,320,000 to $1,584,000, thereby resulting in an increase in operating income from $87,120 to $95,040. (2) Sales remain constant, but Thornton reduces expenses, resulting in an increase in operating income from $87,120 to $89,760. (3) Thornton is able to reduce its invested capital from $660,000 to $528,000 without affecting operating income. Complete this question by entering your answers in the tabs below. Compute Thornton's profit margin, turnover and return on investment for the year. (Round "Profit margin" and "Return on investment" to 1 decimal place (i.e., 0.234 should be entered as 23.4 ).) Recompute Thornton's ROI under each of the following independent assumptions: (Do not round intermediate calculations. Round your answers to 2 decimal places. (i,e., .2345 should be entered as 23.45).) (1) Sales increase from $1,320,000 to $1,584,000, thereby resulting in an increase in operating income from $87,120 to $95,040 (2) Sales remain constant, but Thornton reduces expenses, resulting in an increase in operating income from $87,120 to $89,760 (3) Thornton is able to reduce its invested capital from $660,000 to $528,000 without affecting operating income. Thornton Corporation's balance sheet indicates that the company has $660,000 invested in operating assets. During the year, Thornton earned operating income of $87,120 on $1,320,000 of sales. Required a. Compute Thornton's profit margin for the year. b. Compute Thornton's turnover for the year. c. Compute Thornton's return on investment for the year. d. Recompute Thornton's ROl under each of the following independent assumptions: (1) Sales increase from $1,320,000 to $1,584,000, thereby resulting in an increase in operating income from $87,120 to $95,040. (2) Sales remain constant, but Thornton reduces expenses, resulting in an increase in operating income from $87,120 to $89,760. (3) Thornton is able to reduce its invested capital from $660,000 to $528,000 without affecting operating income. Complete this question by entering your answers in the tabs below. Compute Thornton's profit margin, turnover and return on investment for the year. (Round "Profit margin" and "Return on investment" to 1 decimal place (i.e., 0.234 should be entered as 23.4 ).) Recompute Thornton's ROI under each of the following independent assumptions: (Do not round intermediate calculations. Round your answers to 2 decimal places. (i,e., .2345 should be entered as 23.45).) (1) Sales increase from $1,320,000 to $1,584,000, thereby resulting in an increase in operating income from $87,120 to $95,040 (2) Sales remain constant, but Thornton reduces expenses, resulting in an increase in operating income from $87,120 to $89,760 (3) Thornton is able to reduce its invested capital from $660,000 to $528,000 without affecting operating income
