Company's margin, turnover and return on investment
Not what you're looking for?
Blackstone company
Statements of financial position
Beginning balance ending balance
Assets
Cash 130,000 170,000
Accounts receivable 100,000 130,000
Plant and equipment (net) 180,000 150,000
Investment in balsam co. 50,000 60,0000
Goodwill 120,000 120,000
Total assets $580,000 $630,000
Liabilities and owners equity:
Accounts payable 220,000 250,000
Other liabilities 100,000 80,000
Owner's equity 260,000 300,000
Total liabilities and owner's equity $580,000 $630,000
Blackstone Company
Income Statement
Sales $1,1335,000
Less operating expense 1,214,850
Net operating income 120,150
Less tax expense 40,000
Net income $80,150
Other info: The company paid dividends of $32,200 last year. The "investment in balsam company" on the statement of financial position represents an investment in the stock of another company.
a.) What is the company's margin, turnover and return on investment for last year?
b.) The Board of Directors of Blackstone has set a minimum required return of 25%. What was the company's residual income last year?
Purchase this Solution
Solution Summary
The response provides steps to compute the company's margin, turnover and return on investment
Solution Preview
a.) What is the company's margin, turnover and return on investment for last year?
Margin= Net Income/Sales
= 80150/11335000
=0.71%
Turnover= Sales/Total ...
Purchase this Solution
Free BrainMass Quizzes
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.