TheThe following information is available for the Hancock Company. Sales $756,00

Question

TheThe following information is available for the Hancock Company.

Sales                                                              $756,000

       Cost of Sales                                                 $315,000

       Operating Expenses                                      $252,000

       Operating Earnings                                       A

       Average invested Capital                             $1,890,000

       Minimum Acceptable Return                       12%

       Residual Income                                           B
Capital Turnover                                          C

RO  ROI                                                              D

                
Compute the answers for items A: ____________________

                                                         B: ____________________

                                                         C: ____________________

                                                         D: ____________________

      Please show ALL WORK FOR ANSWERS.

Explanation / Answer

A. 756000-315000-252000= 189,000

B. 189,000- (1,890,000*0.12)= (37,800)

C. 756000/1890000= 0.4

D. 189000/1890000= 10%

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