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    Company's margin, turnover and return on investment

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    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?

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    https://brainmass.com/business/business-math/companys-margin-turnover-return-investment-249457

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    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 ...

    Solution Summary

    The response provides steps to compute the company's margin, turnover and return on investment

    $2.19

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