Reference no: EM133156341
Question - Dynamic Software Company provide radar system for Australian Defense Force. They have reported the following results for the past quarter.
Net Profit Before Tax $520,000
Sales Revenue $2,460,000
Invested Capital $4,250,000
The company's required rate of return is 8%.
Required - Calculate the following for Dynamic Software Company:
1. Return on sales, show formulae and calculation to 2 decimal places.
2. Investment Turnover, show formulae and calculation to 2 decimal places.
3. Return on Investment, show formulae and calculation to 2 decimal places
4. Residual income, show formulae and calculation to 2 decimal places