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Calculating Net Income and Investment Base

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Harbor Corporation had sales of $1,500,000 for the year ended Dec 31, 2004, an asset turnover ratio of 2 for the same period, and a return on investment of 6 percent. What was Harbor's net income and investment base?

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Solution Summary

This solution shows how to calculate the net income and investment base for the given company based on the sales and asset turnover ratio.

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Return on Investment = Net Income/Total Assets
Asset turnover = ...

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