Margin, Turnover, Return on Investment, Average Operating Assets
Elway Company provided the following income statement for the last year:
| Sales | $1,040,000,000 |
| Less: Variable expenses | 700,250,000 |
| Contribution margin | $ 339,750,000 |
| Less: Fixed expenses | 183,750,000 |
| Operating income | $ 156,000,000 |
At the beginning of last year, Elway had $28,300,000 in operating assets. At the end of the year, Elway had $23,700,000 in operating assets.
Required:
1. Compute average operating assets.
$
2. Compute the margin (as a percent) and turnover ratios for last year.
| Margin | % |
| Turnover |
3. Compute ROI as a percent.
%
10 years ago
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- elway_company.xlsx