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Ratio analysis

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The records of the Rodney Division of Kelly Corporation showed the following for last year:
Sales revenue $2,160,000
Accounts receivable 495,000
Productive assets 1,620,000
Net operating income 864,000
Taxable income 562,000

What is the sales margin for the Rodney Division?
A) 13.33%
B) 53.33%
C) 40.00%
D) 34.70%

What is the capital turnover for the Rodney Division?
A) 1.333
B) .533
C) .400
D) .347

What is the return on investment for the Rodney Division?
A) 13.33%
B) 53.33%
C) 40.00%
D) 34.70%

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The solution contains formulas and calculations of sales margin ratio, capital turnover, return on investment ratio.

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The records of the Rodney Division of Kelly Corporation showed the following for last year:
Sales revenue $2,160,000
Accounts receivable 495,000
Productive assets 1,620,000
Net ...

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