Business, 23.03.2020 21:46 didirose

Mason Corporation had $650,000 in invested assets, sales of $700,000, income from operations amounting to $99,000, and a desired rate of return of 15%.
A. What is the profit margin for Mason. B. What is the investment turnover for Mason. C. What is the residual income for Mason?

Answers: 3

Show answers

Answers

Answer from: CrunchyBreadstick

When sales and goods earn an amount in a business is called revenue.

The correct answers are:

A. 14.1%

B. 1.08

C. $1500

Given,

Invested amount = $650,000Sales = $700,000Operation's asset = $99,000

a) $\text{Profit margin} = \dfrac{\text{Net income}} {\text{Revenue}} \times 100\%$

Net income = operations income = $99000

Total revenue = sales = $700000

$\text{Profit margin} = \dfrac{\$99000} {\$700000} \times 100\%$

Profit margin = 14.1%

b) Investment turnover is the proportion of net sales to the aggregate of equity and deficit.

Net sales = $700000

Debt = invested assets =$650,000

$\text{Investment turnover} =\dfrac{ \text{Net sales}} {\text{Debt}}$

$\text{Investment turnover} = \dfrac{700000}{650000}$

= $ 1.08

c) Residual income is the earnings generated after all deficits and expenses have been disbursed.

$\text{Residual income} = \text{Income from operations - Returns of investment}$

Income from operations =$99000

Return on investment = 15% of $650000 = $97500

Residual income = $99000 - $97500

=$1500

To learn more about residual income and revenue follow the link:

link

Answer from: 719729

a) 14.1%

b)1.08

c)$1500

Explanation:

Given invested assets = $650,000

Sales = $700,000

operation's income = $99,000

a)Profit margin = net income/revenue × 100%

Net income = operations income = $99000

Total revenue = sales = $700000

Profit margin = $99000/$700000×100%

Profit margin = 14.1%

b) investment turnover is the ratio of the net sales to the sum of equity and debt.

Net sales = $700000

Debt = $650,000 = invested assets

Investment turnover = Net sales/debt

Investment turnover = 700000/650000

Investment turnover = 1.08

c) residual income is the income generated after all debts and expenses has been paid.

Residual income = income from operations - returns of investment

Income from operations =$99000

Return on investment = 15% of $650000 = $97500

Residual income = $99000-$97500

Residual income =$1500

Answer from: Quest

Apotato i'm guessing?

Answer from: Quest

commercial banking

provide online payment services

provide online banking

asset management firms

invest in people's funds in securities

accept tax return refunds

Another question on Business

Business, 22.06.2019 11:10

Suppose that the firm cherryblossom has an orchard they are willing to sell today. the net annual returns to the orchard are expected to be $50,000 per year for the next 20 years. at the end of 20 years, it is expected the land will sell for $30,000. calculate the market value of the orchard if the market rate of return on comparable investments is 16%.

Answers: 1

Answer

Business, 22.06.2019 22:00

The company is experiencing an increase in competition, and at the same time they are building more production facilities in southeast asia. in this scenario, the top management team is most likely to multiple choice increase the cost of their products. restructure to reflect a more bureaucratic, stable organization. pull decision-making responsibility from low-level management, taking it on themselves. give lower-level managers the authority to make decisions to benefit the firm. rid themselves of all buffering product.

Answers: 3

Answer

Business, 22.06.2019 23:40

Elite coffee and bakery, a café that offers a relaxing environment to enjoy quality coffees, teas, soups, and other menu items, has a poster in the front of its restaurants that reads, "we will always provide a quality product to our customers better meet the challenges of their day and always take the time to offer caring service one person at a time." this statement is elite's

Answers: 2

Answer

Business, 23.06.2019 00:00

An attorney came to work on a saturday. when he signed in, he was advised by the morning security guard employed by the building management that he must be out of the building by 5 p.m., when it closes. however, he stayed past 5 p.m. to complete a brief that had to be filed on monday morning. at 5: 15 p.m., the afternoon security guard set the locks on all the doors of the building and left. because she was in a hurry, she did not check the sign-in sheet to make sure that everyone had signed out, contrary to mandatory procedures. when the attorney tried to exit 15 minutes later, he discovered that the doors were all locked and could not be opened from the inside. he used his cell phone to call for , and a supervisor from the building arrived and let him out shortly thereafter. if the attorney sues the building management for false imprisonment, is he likely to win?

Answers: 1

Answer

You know the right answer?

Mason Corporation had $650,000 in invested assets, sales of $700,000, income from operations amounti...

Questions