Calculate the return on sales for dynamic software company

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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

Reference no: EM133156341

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