Tundra Services Company, a division of a major oil company, provides various ser

Question

Tundra Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales $ 17,300,000 Net operating income $ 4,700,000 Average operating assets $ 36,000,000 Required: 1. Compute the margin for Tundra Services Company in percentage. (Round your answer to 2 decimal places.) 2. Compute the turnover for Tundra Services Company. (Round your answer to 2 decimal places) 3.Compute the return on investment (ROI) for Tundra Services Company. (Round your intermediate calculations and final answer to 2 decimal places.)

Explanation / Answer

Statement showing analysis Particulars Amount Sales    17,300,000.00 Net Operating income      4,700,000.00 Margin = 4,700,000/17,300,000*100 27.17% Average Operating Assets    36,000,000.00 Turnover= Sales/ Avg op Assets = 17,300,000/36,000,000                       0.48 Return on Investment = NOI/Avg Op Assets = 4,700,000/36,000,000 13.06%

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