E10-4 Finding Unknowns Using Return on Investment, Profit Margin, Investment Tur

Question

E10-4 Finding Unknowns Using Return on Investment, Profit Margin, Investment Turnover [LO 10-4]

Krall Company recently had a computer malfunction and lost a portion of its accounting records. The company has reconstructed some of its financial performance measurements including components of the return on investment calculations.   


Required:
Help Krall rebuild its information database by completing the following table: (Do not round your intermediate calculations. Round your final answers to 2 decimal places, (i.e. 0.1234 should be entered as 12.34%.))  

Return on Investment Profit Margin Investment Turnover Operating Income Sales Revenue Average Invested Assets % % $43,000.00 $716,000.00 $1,530,000.00 % 10.30 % 0.44 $116,019.20 $2,560,000.00 % 15.80 % 1.90 $3,325,000.00 12.10 % % 2.40 $500,000.00

Explanation / Answer

ROI=Operating income/Average invested assets

Profit margin=Operating income/Sales

Investment turnover=Sales/Average invested assets

ROI Profit margin Investment turnover Operating income Sales Average invested assets 2.81% 6.01% 0.47 43000 716000 1,530,000 4.53% 10.3% 0.44 116019.20 1126400 2,560,000 30.02% 15.8% 1.9 525350 3,325,000 1750000 12.1% 5.04% 2.4 25208.33 500,000 208,333.33(Approx).

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