Respuesta :
Answer:
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
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 = $650,000
- Sales = $700,000
- Operation's asset = $99,000
a) [tex]\text{Profit margin} = \dfrac{\text{Net income}} {\text{Revenue}} \times 100\%[/tex]
Net income = operations income = $99000
Total revenue = sales = $700000
[tex]\text{Profit margin} = \dfrac{\$99000} {\$700000} \times 100\%[/tex]
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
[tex]\text{Investment turnover} =\dfrac{ \text{Net sales}} {\text{Debt}}[/tex]
[tex]\text{Investment turnover} = \dfrac{700000}{650000}[/tex]
= $ 1.08
c) Residual income is the earnings generated after all deficits and expenses have been disbursed.
[tex]\text{Residual income} = \text{Income from operations - Returns of investment}[/tex]
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:
https://brainly.com/question/10705891
