Grady Corporation provides the following financial information
Minimum acceptable operating income $556,600
Average total assets $2,000,000
Operating income $708,000
Return on investment 35.40%
Net sales $900,000
Calculate the target rate of return. (Round your answer to two decimal places.)
A) 27.83%
B) 78.67%
C) 35.40%
D) 61.84%
A .A) Minimum acceptable operating income = Target rate of return x Average total assets
Target rate of return = Minimum acceptable operating income / Average total assets = $556,600 / $2,000,000 = 27.83%
You might also like to view...
Budget Auto Parts Company uses the indirect method to prepare the statement of cash flows
Refer to the following income statement: Budget Company Income Statement Year Ended December 31, 2017 Sales Revenue $360,000 Interest Revenue 1,500 Gain on Sale of Plant Assets 6,000 Total Revenues and Gains $367,500 Cost of Goods Sold 165,000 Salary Expense 67,500 Depreciation Expense 18,000 Other Operating Expenses 34,500 Interest Expense 1,500 Income Tax Expense 7,500 Total Expenses 294,000 Net Income (Loss) $73,500 Additional information provided by the company includes the following: Current assets other than cash increase by $36,000. Current liabilities decrease by $1,500. Prepare the operating activities section of the statement of cash flows. What will be an ideal response
When developing the experience section of the résumé, the most space should be devoted to
A) jobs that closely relate to the targeted position. B) jobs that you held the longest. C) jobs that had a higher level of responsibility. D) jobs where you learned the most. E) jobs you enjoyed the most.