Calculating Average Operating Assets, Margin, Turnover, and Return on Investment East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales $531,250...

Calculating Average Operating Assets, Margin, Turnover, and Return on Investment

East Mullett Manufacturing earned operating income last year as shown in the following income statement:

Sales	$531,250
Cost of goods sold	280,000
Gross margin	$251,250
Selling and administrative expense	195,300
Operating income	$55,950
Less: Income taxes (@ 40%)	22,380
Net income	$33,570

At the beginning of the year, the value of operating assets was $390,000. At the end of the year, the value of operating assets was $460,000.

Required:

For East Mullett Manufacturing, calculate the following:

1. Average operating assets	$fill in the blank 1
2. Margin (round to two decimal places)	fill in the blank 2	%
3. Turnover (round to two decimal places)	fill in the blank 3
4. Return on investment (round to one decimal place)	fill in the blank 4	%

Jun 11, 2022

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