Calculating Average Operating Assets, Margin, Turnover, and Return on InvestmentEast Mullett Manufacturing earned operating income last year as shown in the following income statement:Sales$531,250Cost of goods sold280,000Gross margin$251,250Selling and administrative expense180,000Operating income$71,250Less: Income taxes (@ 40%)28,500Net income$42,750At the beginning of the year, the value of operating assets was $390,000. At the end of the year,the value of operating assets was $460,000.Required:For East Mullett Manufacturing, calculate the following:1. Average operating assets2. Margin (round to two decimal places)%3. Turnover (round to two decimal places)4. Return on investment (round to one decimal place)%

Formulas used in computation Average operating assets = beginning operating asset + Ending…

lanufacturing earned operating income last year as shown in the following income statement: $531,250 = sold 280,000 gin $251,250 dministrative expense 180,000 income $71,250 taxes (@ 40%) 28,500 $42,750 ng of the year, the value of operating assets was $390,000. At the end of the year, the value of operating assets was $460,000. tt Manufacturing, calculate the following: perating assets pund to two decimal places) % round to two decimal places) investment (round to one decimal place) %

lanufacturing earned operating income last year as shown in the following income statement: $531,250 = sold 280,000 gin $251,250 dministrative expense 180,000 income $71,250 taxes (@ 40%) 28,500 $42,750 ng of the year, the value of operating assets was $390,000. At the end of the year, the value of operating assets was $460,000. tt Manufacturing, calculate the following: perating assets pund to two decimal places) % round to two decimal places) investment (round to one decimal place) %

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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