Compute rundle return on investment

Assignment Help Accounting Basics
Reference no: EM132838108

Rundle Corporation's balance sheet indicates that the company has $620,000 invested in operating assets. During 2018, Rundle earned operating income of $76,880 on $1,240,000 of sales.

Required

Problem 1: Compute Rundle's profit margin for 2018.

Problem 2: Compute Rundle's turnover for 2018.

Problem 3: Compute Rundle's return on investment for 2018.

Problem 4: Recompute Rundle's ROI under each of the following independent assumptions:

(1) Sales increase from $1,240,000 to $1,488,000, thereby resulting in an increase in operating income from $76,880 to $81,840.
(2) Sales remain constant, but Rundle reduces expenses, resulting in an increase in operating income from $76,880 to $79,360.
(3) Rundle is able to reduce its invested capital from $620,000 to $496,000 without affecting operating income.

Reference no: EM132838108

Questions Cloud

Calculate the present value for investment x and y : Calculate the present value for Investment X and Y if the discount rate is 4%. Investment X offers to pay you $4,600 per year for nine years
Role of business ethics in relationships with customers : Read the Forbes article, "The Role of Business Ethics in Relationships with Customers."
What would you like to see happen to address the issue : What would you like to see happen to address the issue? Use evidence, court cases, criminal justice policy, or any item to support your stance and strengthen.
Describe example of effective persuasive communication : Describe an example of effective persuasive communication from an article and identify the different parts of the rhetorical situation.
Compute rundle return on investment : Compute Rundle's return on investment for 2018. Rundle Corporation's balance sheet indicates that the company has $620,000 invested in operating assets.
Role of the leader in managing issue : Create a PowerPoint presentation detailing this issue. Include background information, why this is an issue, the role of the leader in managing this issue
What rate should the shop report : What rate should the shop report? Big Show's Pawn Shop charges an interest rate of 28.8% per month on loans to its customers.
Assignment on innovation and e-mail rules : This chapter provides insights into how manufacturing and service organizations can implement processes and controls to increase efficiency
Scheduling procedures for various types of service operation : Categorize different scheduling procedures for various types of service operations, such as restaurants, hospitals, and airlines.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the amount of cai companys total assets

The total assets of Yap Co. are $600,000 and its liabilities are equal to two-thirds of its total assets.What is the amount of Yap Co.'s stockholders' equity?

  Solvgen inc an sec registrant is a pharmaceutical

direct drugs inc. direct is planning to acquire solvgen inc. solvgen or the company a publicly owned company during the

  How much net income should be distributed to conyers

Dane and Conyers had $39,000 and $109,000, respectively, in their January 1 capital balances. Net income for the year was $175,000.

  Income statement for particular year

On December 1, 2002, Blake Inc. signed an operating lease for a warehouse for 10 years at $24,000 per year. Upon execution of the lease, Blake paid $48,000 covering rent for the first two years. How much should be shown in Blake's income statement..

  Management estimates that 5 of credit sales are not

1. benchmarking is relatively easy to do with the amount of available financial information about companies. best done

  Which transactions increases asset and capital

Which transactions increases asset and capital in the accounting equation? Cash is received from a customer for services rendered to them.

  What is the journal entry to record the dividends

Clinton Ltd acquired 20% of and significant influence over the operations of Lee Ltd on 1 July 20X0. At that date, the equity of Lee Ltd comprised retained.

  Us airways had indefinitely deferred the quarterly dividend

us airways had indefinitely deferred the quarterly dividend on its 358 million of cumulative convertible 91.25

  Why is control over unauthorized access so important

Why is control over unauthorized access so important in a database environment?

  What basis Osborne Corporationhave in the assets acquired

Osborne, the parent corporation, has a basis of $540,000 in the stock of Widget Corporation, What basis will Osborne Corporationhave in the assets acquired

  How do calculate the expected annual sick-leave expense

Calculate the expected annual sick-leave, what would the entry be to record the employee's weekly salary (round amounts to the nearest dollar)?

  Prepare a cash flows statement and a compilation report

This case addresses the compilation and preparation of a set of financial statements for a first-year company's operations.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd