Gibson Corporation’s balance sheet indicates that the company has $580,000 invested in operating assets. During the year, Gibson earned operating income of $67,280 on $1,160,000 of sales. Required Compute Gibson’s profit margin for the year. Compute Gibson’s turnover for the year. Compute Gibson’s return on investment for the year. Recompute Gibson’s ROI under each of the following independent assumptions: (1) Sales increase from $1,160,000 to $1,392,000, thereby resulting in an increase in operating income from $67,280 to $76,560. (2) Sales remain constant, but Gibson reduces expenses, resulting in an increase in operating income from $67,280 to $69,600. (3) Gibson is able to reduce its invested capital from $580,000 to $464,000 without affecting operating income.
Please I need step 4
Gibson Corporation’s
Required
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Compute Gibson’s profit margin for the year.
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Compute Gibson’s turnover for the year.
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Compute Gibson’s
return on investment for the year. -
Recompute Gibson’s ROI under each of the following independent assumptions:
(1) Sales increase from $1,160,000 to $1,392,000, thereby resulting in an increase in operating income from $67,280 to $76,560.
(2) Sales remain constant, but Gibson reduces expenses, resulting in an increase in operating income from $67,280 to $69,600.
(3) Gibson is able to reduce its invested capital from $580,000 to $464,000 without affecting operating income.
![Complete this question by entering your answers in the tabs below.
Req A to C
Req D
Recompute Gibson's ROI under each of the following independent assumptions: (Do not round intermediate calculations.
Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)
(1) Sales increase from $1,160,000 to $1,392,000, thereby resulting in an increase in operating income from $67,280 to
$76,560.
Answer is not complete.
(2) Sales remain constant, but Gibson reduces expenses, resulting in an increase in operating income from $67,280 to
$69,600.
(3) Gibson is able to reduce its invested capital from $580,000 to $464,000 without affecting operating income.
Return on Investment
(1)
(2)
(3)
%6
96
%6
< Req A to C
Req D >
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