The following selected data pertain to the belt division of Allen Corp. for last year:...
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Accounting
The following selected data pertain to the belt division of Allen Corp. for last year:
Sales $500,000
Average Operating Assets $200,000
Operating Income $ 20,000
Turnover 2.5 times
Minimum required return 20.0%
The Return on Investment 2 marks
The Residual Income 2 marks
Harstin Corporation has provided the following data:
Sales $625,000
Gross Margin $ 70,000
Operating Income $ 50,000 Shareholders Equity $ 90,000
Average Operating Assets $250,000
Residual Income $ 20,000
Compute the following:
The Margin 2 marks
The Turnover 2 marks
Make sure to show ALL work! A majority of the marks are based on the work, not the final answer. To receive full credit for each question, you must show your work, and round your final answers to 2 decimal points correctly.
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