Business, 23.03.2020 21:46 didirose

Mason Corporation had $650,000 in invested assets, sales of $700,000, income from operations amounting to $99,000, and a desired rate of return of 15%.
A. What is the profit margin for Mason. B. What is the investment turnover for Mason. C. What is the residual income for Mason?

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Answer from: CrunchyBreadstick

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 = $650,000Sales = $700,000Operation's asset = $99,000

a) $\text{Profit margin} = \dfrac{\text{Net income}} {\text{Revenue}} \times 100\%$

Net income = operations income = $99000

Total revenue = sales = $700000

$\text{Profit margin} = \dfrac{\$99000} {\$700000} \times 100\%$

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

$\text{Investment turnover} =\dfrac{ \text{Net sales}} {\text{Debt}}$

$\text{Investment turnover} = \dfrac{700000}{650000}$

= $ 1.08

c) Residual income is the earnings generated after all deficits and expenses have been disbursed.

$\text{Residual income} = \text{Income from operations - Returns of investment}$

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:

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Answer from: 719729

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

Answer from: Quest

i would prefer to go with the news article for nate, its recent and updated and stores a lot of information

Answer from: Quest

answer; lags, push the econ below the natural level of output;

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