Compute the company margin

Assignment Help Accounting Basics
Reference no: EM131820314

Question - KAM Co. reports the following information for its most recent year:

Sales $2,000,000

Net operating income $180,000

Average operating assets $700,000

Required: show your work

1) Compute the company's margin.

2) Compute the company's turnover.

3) Compute the company's return on investment (ROI).

4) The company predicts that for next year, there will be a $500,000 increase in sales, resulting in $200,000 increase in net operating income. But average operating assets will also increase by 200,000. What would be the company's predicted ROI for next year?

5) What can you say about management's performance if the predicted ROI for next year turns out to be true?

Reference no: EM131820314

Questions Cloud

Distribution of buying frequency rates : The article "The Distribution of Buying Frequency Rates" (Journal of Marketing Research [1980]: 210-216) reported the results of a 31 2-year study
Calculate the increase in net working capital : Ajax Ltd, in 2012, reported an amount of $45m in Accounts Receivable. Calculate the increase in Net Working Capital in 2012.
Research the literature and find the evidence : The first step in translating evidence into practice is to find the evidence. Various tools are now available to help you research the literature.
Compute accounts receivable turnover ration : All sales were on account. Net cash provided by operating activities
Compute the company margin : KAM Co. reports the following information for its most recent year: Net operating income $180,000. Compute the company's turnover
Preparing a statement of retained earnings : Preparing a statement of retained earnings Tinder, Inc. had beginning retained earnings of $90,000 on January 1, 2016.
Expected number of citrus trees showing damage : a. If the temperature does drop to 308F, what is the expected number of citrus trees showing damage in orchards of 2000 trees?
Explain the examples of the integration of community health : Impact of the problem, issue, suggestion, initiative, or educational need on the work environment, the quality of care provided by staff, and patient outcomes.
What are the basis of audit evidence : Audit evidence is all the information used by the auditor in arriving at the conclusions on which the audit opinion. WHAT ARE THE BASIS OF AUDIT EVIDENCE?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Lawsuit and was offered four different payment alternative

Eichelberger Trucking won a settlement in a lawsuit and was offered four different payment alternatives by the defendant's insurance company

  The net realizable value of accounts receivable

The adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense; and

  Entire production at the prevailing market price

Hogan Farms produced 1,600,000 pounds of cotton during the 2015 season. Hogan sells all of its cotton to Ott Co., which has agreed to purchase Hogan's entire production at the prevailing market price. Recent legislation assures that the market pri..

  Describe how the business is changing

A brief summary of the company does and how the business is changing. Advantages and Disadvantages of financing alternatives. What you would recommend and why.

  What is the sarbanes-oxley act

What is the Sarbanes-Oxley Act? How does act affect the audits for the accounting firm and for the organization? Has the Sarbanes-Oxley Act improved the quality of the audit? Answer in 150-200 words.

  Prepare a multi-step income statement

Prepare a multi-step income statement for the year 2017. Do not prepare a statement of comprehensive income.

  How you got the answer for this questionassume alpha

240,000Common Stock, $10 Par Value, 100,000 shares authorized, 50,000 shares issued and outstanding500,000Additional Paid In Capital ½ Common Stock

  Springbok corporation

Springbok Corporation

  Cassidy manning is assistant controller at lemar packaging

cassidy manning is assistant controller at lemar packaging inc. a manufacturer of cardboard boxes and other packaging

  What is the costs of goods manufactured schedule for may

Millar Company has the following costs records for May 2015. Instructions - What is the costs of goods manufactured schedule for May 2015

  What is one marketing concept involved in the article

What is one marketing concept involved in the article by Bloom and Dalphe (1993).Provide support for your analysis.

  Basics of balance in accounts receivable

Firm has forecasted sales of $3,000 in April, $4,500 in May and $6,500 in June. All sales are on credit. 30% is collected the month of sale and the remainder the following month. What will be balance in accounts receivable at the beginning of J..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd