ACCOUNTING 104 Question 1 of 1 00 points E104 Finding Unknow

ACCOUNTING 10-4 Question 1 (of 1) 00 points E10-4 Finding Unknowns Using Return on Investment, Profit Margin, Investment Turnover [LO 10-4] Krall Company recently had a computer malfunction and lost a portion of its accounting records. The company has reconstructed Required: Help Krall rebuild its information database by completing the following table: (Do not round your intermediate calculations. Rou investmentOperating Sales Revenue Invested Assets $ 54,000.00$ 702,000.00 1,530,000.00 2,520,000 00 Return on Average Protit Margin stment Turnover Income 11.00% 1550196 031 8593200 1.35 3.05 2,187,000.00 12.701% $ 507,000.00 References eBook & Resources Worksheet Dificulty 1 Easy E10.4 F Unknowns Using Return on Learning 10-04 Compute and interpret return on t turnover, and profit margin Investment, Profit Margin, Investment Turnovernvestment LO 10.4)

Solution

Return on Investment = Operation Income/ Average Invested Assets Profit Margin = Operation Income/Sales Revenue Investment Turnover = Sales Revenue /Average Invested Assets Operation Income Sales Revenue Average Invested Assets 3.53% 7.69% 0.46 $54,000.00 $702,000.00 $1,530,000.00 3.41% 11.00% 0.31 $85,932.00 $781,200.00 $2,520,000.00 20.93% 15.50% 1.35 $338,985.00 $2,187,000.00 $1,620,000.00 12.70% 4.16% 3.05 $21,111.15 $507,000.00 $166,229.51 Sales Revenue = .31*$2520000 $781,200.00 ROI = PM x Investment Turnover Operation Income = 15.50% x $2187000 $338,985.00 Average Invested Assets = $2187000/1.35 $1,620,000.00 Operation Income = 12.70% x $166229.51 $21,111.15 Average Invested Assets = $507000/3.05 $166,229.51