Margin, Turnover, Return on Investment, Average Operating Assets

Elway Company provided the following income statement for the last year:

Sales$1,040,000,000
Less: Variable expenses700,250,000
Contribution margin$ 339,750,000
Less: Fixed expenses183,750,000
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