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Zachary Corporation's balance sheet Indicates that the company has $690,000 Invested in operating assets. During Year 2. Zachary earned operating income of $95,220 on
Zachary Corporation's balance sheet Indicates that the company has $690,000 Invested in operating assets. During Year 2. Zachary earned operating income of $95,220 on $1,380,000 of sales. Required a. Compute Zachary's profit margin for Year 2. b. Compute Zachary's turnover for Year 2. c. Compute Zachary's return on investment for Year 2. d. Recompute Zachary's ROI under each of the following independent assumptions: (1) Sales increase from $1,380,000 to $1,656,000, thereby resulting in an increase in operating income from $95.220 to $107,640. (2) Sales remain constant, but Zachary reduces expenses, resulting in an increase in operating income from $95,220 to $97,980. (3) Zachary is able to reduce its invested capital from $690,000 to $552.000 without affecting operating income. Complete this question by entering your answers in the tabs below. Req A to C Req D Compute Zachary's profit margin, turnover and return on investment for Year 2. Note: Round "Profit margin" and "Return on investment" to 1 decimal place (i.e.,0.234 should be entered as 23.4). Profit margin Turnover Return on investment % times % Req A to C Req D > Complete this question by entering your answers in the tabs below. Req A to C Req D Recompute Zachary's ROI under each of the following independent assumptions: Note: Do not round intermediate calculations. Round your percentage answers to 2 decimal places. (i.e.,0.2345 should be entered as 23.45). (1) Sales increase from $1,380,000 to $1,656,000, thereby resulting in an increase in operating income from $95,220 to $107,640. (2) Sales remain constant, but Zachary reduces expenses, resulting in an increase in operating income from $95,220 to $97,980. (3) Zachary is able to reduce its invested capital from $690,000 to $552,000 without affecting operating income. Return on Investment (1) % (2) % (3) % < Req A to C Req D > Show less A
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