Please answer all parts of the question and show every step!!!! Results from Pri

Question

Please answer all parts of the question and show every step!!!!

Results from Prime Corporation's most recent year of operations are presented in the following table ?(Click the icon to view the information.) Requirements 1. Calculate the sales margin, capital turnover, and return on investment (ROl) 2. Calculate the residual income (RI). Data Table Requirement 1. Calculate the sales margin, capital turnover, and return on investment (ROI) $3,800 38,500 14 % First enter the formula, then calculate the sales margin Sales margin Target rate of return. Print Done Next enter the formula, then calculate the capital turnover. (Round your answer to two decimal places.) - Capital turnover imes

Explanation / Answer

Ans.1 a Sales Margin   =   Operating income / Sales * 100 9240 / 38500 * 100 24% Ans.1 b Capital turnover = Sales / Total assets 38500 / 14000 2.75 times Ans.1 c ROI = Operating income / Total assets 9240 / 14000 0.66 or   66% Ans.2 Residual income =   Operating income - (Total assets * Target rate of return) 9240 - (14000 * 14%) 9240 - 1960 7280

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