Finance on Salco

DONNA URCHAK The annual gross gross revenue for Salco Inc. were $4.5 million last division. The theaters end-of-year balance tabloid was as follows: Current additions $500,000   Liabilities $1,000,000 illuminate restore assets $1,500,000   Owners equity $1,000,000   $2,000,000     $2,000,000 The homes income statement for the year was as follows: Sales $ 4,500,000 little cost of goods sold (3,500,000) pure(a) wampum $ 1,000,000 Less operational expenses   (500,000) in operation(p) income $   500,000 Less busy expense   (100,000) Earnings forrader taxes $   400,000 Less taxes (50%)   (200,000) Net income $   200,000 a. figure out Salcos total asset turnover, run(a) profit boundary line, and operating chip in on assets. b. Salco plans to renovate one of its proves, which provide require an added enthronization in plant and equipment of $1 million. The firm leave behind carry its redeem debt ratio of .5 when financing the sore coronation and expects sales to pillow constant. The operating profit margin will test to 13 percent. What will be the red-hot operating present on assets for Salco after the plants renovation? c. presumption that the plant renovation in severalize b occurs and Salcos stakes expense rises by $50,000 per year, what will be the upshot pull in on the common stockholders investment? Compare this tramp of authorise with that earned before the renovation. A. Salcos total asset turnover, operating profit margin, and operating subject on assets.

full summation Turnover = _____Sales_____ Total Assets = $4,500,000 $2,000,000 = 2.25 times Operating Profit allowance aim = Operating Income Sales = $500,000 $4,500,000...If you want to sign a full essay, gild it on our website: Ordercustompaper.com

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