Required Information Annie's Homemade Ice Cream provided the following data for this year: Sales Net operating income Average operating assets $ 300,000 $ 54,000 $ 187,500 Required: Consider each question below Independently. Carry out all computations to two decimal places. 1. Compute the company's margin, turnover, and return on investment (ROI) for this year. 2. The company is considering buying some billboard advertising with the expectation it would grow next year's sales and net operating Income by $50,000 and $20,000, respectively. If this plan is Implemented, what would become next year's margin, turnover, and ROI? 3. The company is considering buying a second cargo trailer and mobile cold plate push cart to expand its mobile sales. If the company Implements this plan, it expects next year's sales, net operating Income and average operating assets to Increase by $80,000, $30,000, and $10,000, respectively. What would become next year's margin, turnover, and ROI?

Required Information Annie's Homemade Ice Cream provided the following data for this year: Sales Net operating income Average operating assets $ 300,000 $ 54,000 $ 187,500 Required: Consider each question below Independently. Carry out all computations to two decimal places. 1. Compute the company's margin, turnover, and return on investment (ROI) for this year. 2. The company is considering buying some billboard advertising with the expectation it would grow next year's sales and net operating Income by $50,000 and $20,000, respectively. If this plan is Implemented, what would become next year's margin, turnover, and ROI? 3. The company is considering buying a second cargo trailer and mobile cold plate push cart to expand its mobile sales. If the company Implements this plan, it expects next year's sales, net operating Income and average operating assets to Increase by $80,000, $30,000, and $10,000, respectively. What would become next year's margin, turnover, and ROI?

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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