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Question - Monty Design Works generated $531,920 in operating income on sales revenue of $2,659,600. The company had $2,010,000 in assets on January 1 and $2,870,000 in assets on December 31.
(a) Calculate Monty's margin.
(b) Calculate Monty's asset turnover.
(c) Calculate Monty's return on investment.
Differentiate between cash-basis accounting and accrual-basis accounting. Why is accrual-basis accounting the preferred method for most businesses?
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