Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Zulu Company had the following income statement for last year: Sales $4,000,000 Less: Cost of goods sold 2,200,000 Gross profit 1,800,000 Less: Selling and administrative
Zulu Company had the following income statement for last year:
Sales $4,000,000
Less: Cost of goods sold 2,200,000
Gross profit 1,800,000
Less: Selling and administrative expenses 1,080,000
Operating income $ 720,000
The companys assets are shown below:
December 2021 December 2022 Cash $85,000 $91,000 Accounts Receivables $635,000 $565,000 Inventories $356,000 $442,000 Investments in Zena Company $300,000 $300,000 Plant and Equipment - Net $985,000 $865,000 Building rented to Alpha Company $450,000 $450,000 Land for Future Use $200,000 $300,000
Required: (Show the formulas used in each calculation and Carry computations to three decimal places).
A. Calculate the average operating assets. [6 Marks]
B. Calculate the margin. [2 Marks]
C. Calculate the turnover. [2 Marks]
D. Calculate the ROI. [2 Marks]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started