East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales $3,750,000 Cost of goods sold 2,250,000 Gross margin $1,500,000 Selling and administrative expense 1,200,000 Operating income $ 300,000 Less: Income taxes (@ 40%) 120,000 Net income $ 180,000 At the beginning of the year, the value of operating assets was $1,600,000. At the end of the year, the value of operating assets was $1,400,000. Round your answers to two decimal places, when rounding is required. Required: For East Mullett Manufacturing, calculate: 1. Average operating assets $fill in the blank 1 2. Margin fill in the blank 2 % 3. Turnover fill in the blank 3 4. Return on investment fill in the blank 4 %
East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales $3,750,000 Cost of goods sold 2,250,000 Gross margin $1,500,000 Selling and administrative expense 1,200,000 Operating income $ 300,000 Less: Income taxes (@ 40%) 120,000 Net income $ 180,000 At the beginning of the year, the value of operating assets was $1,600,000. At the end of the year, the value of operating assets was $1,400,000. Round your answers to two decimal places, when rounding is required. Required: For East Mullett Manufacturing, calculate: 1. Average operating assets $fill in the blank 1 2. Margin fill in the blank 2 % 3. Turnover fill in the blank 3 4. Return on investment fill in the blank 4 %
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter11: Performance Evaluation And Decentralization
Section: Chapter Questions
Problem 21BEB
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Calculating Average Operating Assets, Margin, Turnover, and
East Mullett Manufacturing earned operating income last year as shown in the following income statement:
| Sales | $3,750,000 |
| Cost of goods sold | 2,250,000 |
| Gross margin | $1,500,000 |
| Selling and administrative expense | 1,200,000 |
| Operating income | $ 300,000 |
| Less: Income taxes (@ 40%) | 120,000 |
| Net income | $ 180,000 |
At the beginning of the year, the value of operating assets was $1,600,000. At the end of the year, the value of operating assets was $1,400,000. Round your answers to two decimal places, when rounding is required.
Required:
For East Mullett Manufacturing, calculate:
| 1. Average operating assets | $fill in the blank 1 | |
| 2. Margin | fill in the blank 2 | % |
| 3. Turnover | fill in the blank 3 | |
| 4. Return on investment | fill in the blank 4 | % |
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