Assignment:
Margin, Turnover, Return on Investment, Average Operating Assets
Elway Company provided the following income statement for the last year:
|
Sales
|
$1,040,000,000
|
|
Less: Variable expenses
|
700,250,000
|
|
Contribution margin
|
$ 339,750,000
|
|
Less: Fixed expenses
|
183,750,000
|
|
Operating income
|
$ 156,000,000
|
At the beginning of last year, Elway had $28,300,000 in operating assets. At the end of the year, Elway had $23,700,000 in operating assets.
Required:
1. Compute average operating assets.
$
2. Compute the margin (as a percent) and turnover ratios for last year.
3. Compute ROI as a percent.