P15-23 Soto Corportation's balance sheet indicates that the company has $300,000 invested in operating assets. During 20111, Soto earned operating income of $45,000 on $600,000 of sales.
Required:
A.Compute Soto's profit margin for 2011
B.Compute Soto's turnover for 2011
C.Compute Soto's return on investment for 2011
D.Recompute Soto's ROI under each of the following independent assumputions.
(1) Sales increase from $600,000 to $750,000, thereby resulting in an increase in operatingincome from $45,000 to $60,000.
(2) Sales remain constant, but reduces expenses resulting in an increasein operatingincome from $45,000 to $48,000.
(3) Soto is able to reduce its invested capital from $300,000 to $240,000 without affectingoperating income.
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