Walton Corporations balance sheet indicates that the company has $680,000 invested in operating assets. During the year, Walton earned operating income of $92,480 on $1,360,000 of sales.

Required

1. Compute Waltons profit margin for the year.

2. Compute Waltons turnover for the year.

3. Compute Waltons return on investment for the year.

4. Recompute Waltons ROI under each of the following independent assumptions: (1) Sales increase from $1,360,000 to $1,632,000, thereby resulting in an increase in operating income from $92,480 to $97,920. (2) Sales remain constant, but Walton reduces expenses, resulting in an increase in operating income from $92,480 to $95,200. (3) Walton is able to reduce its invested capital from $680,000 to $544,000 without affecting operating income.