Need answer this financial accounting Marathon Equipment Co. has the following financial datafor the year:•••Income from Operations = $212,000Invested Assets = $1,060,000Sales $2,650,000=Using the DuPont Formula, compute the following:a. Profit Margin (%)b. Investment Turnoverc. Rate of Return on Investment (ROI) (%)

Step 1: Definition of DuPont FormulaThe DuPont Formula is a financial analysis tool that breaks down…

Answered: Marathon Equipment Co. has the…

Principles of Accounting Volume 2

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Chapter9: Responsibility Accounting And Decentralization

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Problem 3PB: The income statement comparison for Rush Delivery Company shows the income statement for the current...

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Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the following income statement for the last year: At the beginning of last year, Elway had 28,300,000 in operating assets. At the end of the year, Elway had 23,700,000 in operating assets. Required: 1. Compute average operating assets. 2. Compute the margin and turnover ratios for last year. (Note: Round the answer for margin ratio to two decimal places.) 3. Compute ROI. (Note: Round answer to two decimal places.) 4. CONCEPTUAL CONNECTION Briefly explain the meaning of ROI. 5. CONCEPTUAL CONNECTION Comment on why the ROI for Elway Company is relatively high (as compared to the lower ROI of a typical manufacturing company).
During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000,000. A. Based on this information, calculate asset turnover. B. Using the sales margin from the previous exercise, what is the total ROI for the company during the current year?
Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested assets of 180,000, and sales of 720,000. Use the DuPont formula to compute the return on investment and show (A) the profit margin, (B) the investment turnover, and (C) the return on investment.
Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. A. In the correct format, prepare the income statement using the following information: B. Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital. C. Prepare a short response to accompany the income statement that explains why uncontrollable costs are included in the income statement.
The income statement comparison for Forklift Material Handling shows the income statement for the current and prior year. A. Determine the operating income (loss) (dollars) for each year. B. Determine the operating income (percentage) for each year. C. The company made a strategic decision to invest in additional assets in the current year. These amounts are provided. Using the total assets amounts as the investment base, calculate the return on investment. Was the decision to invest additional assets in the company successful? Explain. D. Assuming an 8% cost of capital, calculate the residual income for each year. Explain how this compares to your findings in part C.
Profit Margin, Investment Turnover, and ROI Cash Company has income from operations of $43,578, invested assets of $269,000, and sales of $726,300. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin % b. Investment turnover c. Return on investment %
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Bottlebrush Company has operating income of $58,328, invested assets of $317,000, and sales of $729,100. Use the DuPont formula to compute the return on investment, and show (a) the profit margin, (b) the investment turnover, and (c) the return on investment. Round answers to one decimal place. a. Profit margin b. Investment turnover c. Return on investment % %
14. Briggs Company has operating income of $33,516, invested assets of $133,000, and sales of $478,800. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin ____ % b. Investment turnover ____ c. Return on investment ____ %
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Marathon Equipment Co. has the following financial data for the year: • • • Income from Operations = $212,000 Invested Assets = $1,060,000 Sales $2,650,000 = Using the DuPont Formula, compute the following: a. Profit Margin (%) b. Investment Turnover c. Rate of Return on Investment (ROI) (%)