The Bottlebrush Company has income from operations of $69,768, invested assets of $204,000, and sales of $775,200. Round answers to one decimal place. (a) Determine the profit margin. % (b) Determine investment turnover. (c) Use the DuPont formula to determined the rate of return on investment. %

The Bottlebrush Company has income from operations of $69,768, invested assets of $204,000, and sales of $775,200. Round answers to one decimal place. (a) Determine the profit margin. % (b) Determine investment turnover. (c) Use the DuPont formula to determined the rate of return on investment. %

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 6EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...

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Question

The Bottlebrush Company has income from operations of $69,768, invested assets of $204,000, and sales of $775,200. Round answers to one decimal place.

(a) Determine the profit margin.
%

(b) Determine investment turnover.

(c) Use the DuPont formula to determined the rate of return on investment.
%

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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