Flamengo Co is a sporting goods manufacturing. Last year, report the following Income Statement:Sales$620,000Cost of goods sold316.000Gross margin$304.000Selling and administrative expense246.000Operating income2458,000Less: Income taxes (at 40%)34,000Net incomeS 24,000At the beginning of the year, the value of operating assets was $263,000. At the end of the year, the value ofoperating assets was $363,000. Flamengo Co. requires a minimum rate of return of 15%. Total capitalemployed equals $350,000 and the actual cost of capital is 6%. Calculate the Turnover.(Carry computations out to two decimal places.)

Turnover refers to the total amount of sales build up by a business in a particular period of time.…

Flamengo Co is a sporting goods manufacturing. Last year, report the following Income Statement: Sales $620,000 Cost of goods sold 316.000 Gross margin $304,000 Selling and administrative expense 246.000

Flamengo Co is a sporting goods manufacturing. Last year, report the following Income Statement: Sales $620,000 Cost of goods sold 316.000 Gross margin $304,000 Selling and administrative expense 246.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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Flamengo Co is a sporting goods manufacturing. Last year, report the following Income Statement:
Sales
$620,000
Cost of goods sold
316.000
Gross margin
$304.000
Selling and administrative expense
246.000
Operating income
2458,000
Less: Income taxes (at 40%)
34,000
Net income
S 24,000
At the beginning of the year, the value of operating assets was $263,000. At the end of the year, the value of
operating assets was $363,000. Flamengo Co. requires a minimum rate of return of 15%. Total capital
employed equals $350,000 and the actual cost of capital is 6%. Calculate the Turnover.
(Carry computations out to two decimal places.)

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