The following information applies to the questions displayed

The following information applies to the questions displayed below The following information pertains to Bishop Concrete oles rewenue Gross ma income Invested captal $1700000 640,000 94.000 190,000 The company\'s imputed interest rate is 6% The capital turnover is ? 1809. O 347 O 28 82 O 521 O 1918 12. The sales margin is ? 553% ?1469% o 3765% O 28.82%. O 19.18%

Solution

Answer:-

Capital turnover ratio :-

answer is B 3.47 times

sales / invested capital = capital turnover

1,700,000/490,000 = 3.4697 = approx 3.47 ans.

2. the sales margin :-

Answer is A 5.53 %

Profit or Income margin / Net sales = sales margin (%)

94,000 / 1,700,000 = 5.2941 % = rounded to 2 decimils = 5.53 %

3. Return on Investement(ROI)

answer:- D 19.18%

Income / Invested Capital = Return on Investement = 94,000 / 490,000 = 19.18 %

4. Residual Income =

Answer = A ,$64,600

Operating Invested capital * Imputed rate = Expected / required return =

490,000 * 6 /100 = $29,400

now subtratcting $29,400 from Income to get residual income generated by the company

94000 - 29400 = $64,600.