THE FOLOWING INFORMATION APPLIES TO QUESTIONS 1 THROUGH 5. The top management at
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Question
THE FOLOWING INFORMATION APPLIES TO QUESTIONS 1 THROUGH 5. The top management at ZYX-BOXX Company, a manufacturer of computer games, is attempting to recover from a flood that destroyed some of their accounting records. The main computer system was also severely damaged. The following information was salvaged: Sales Net Operating Income Operating Assets Return on Investment Return on Sales Investment Turnover Ratio Alpha $2,500,000 $1,500,000 Questions 2 25% Question 5 Beta Question1 $650,000 Question 3 15% 10% N/A Gamma $1,150,000 $575,000 $766,667 Question4 50% 1.5 N/AExplanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Alpha Beta Gamma Sales 2,500,000.00 6,500,000.00 1,150,000.00 Net Operating Income Beta = 650,000/10% 1,500,000.00 650,000.00 575,000.00 Operating Assets = Alpha = 1,500,000/25% Beta = 650,000/15% 6,000,000.00 4,333,333.33 766,667.00 Return on investment Gamma = 575,000/766,667 25.00% 15.00% 75.00% Return on sales Alpha = 1.5m/2.5m 60.00% 10.00% 50.00% Investment turnover ratio N/A N/A 1.50
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