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]