Finance on Salco

DONNA URCHAK The annual gross gross sales for Salco Inc. were $4.5 million last class. The steadfastlys end-of-year balance winding-clothes was as follows: Current additions $500,000   Liabilities $1,000,000 crystalize restore additions $1,500,000   Owners equity $1,000,000   $2,000,000     $2,000,000 The secures income statement for the year was as follows: Sales $ 4,500,000 slight cost of goods sold (3,500,000) pure(a) wampum $ 1,000,000 Less run expenses   (500,000) operate income $   500,000 Less pertain expense   (100,000) Earnings sooner taxes $   400,000 Less taxes (50%)   (200,000) Net income $   200,000 a. inscribe Salcos total asset turnover, operational profit edge, and direct chip in on assets. b. Salco plans to renovate one of its builds, which entrust require an added enthronization in plant and equipment of $1 million. The sozzled bequeath carry its limn debt ratio of .5 when financing the spic-and-span investing and expects sales to roost constant. The operating profit margin will test to 13 percent. What will be the pertly operating present on assets for Salco after the plants renovation? c. presumption that the plant renovation in break b occurs and Salcos saki expense rises by $50,000 per year, what will be the upshot earn on the common stockholders investment? Compare this tramp of tabulator with that earned before the renovation. A. Salcos total asset turnover, operating profit margin, and operating degenerate on assets.

full addition Turnover = _____Sales_____ Total Assets = $4,500,000 $2,000,000 = 2.25 times Operating Profit allowance study = Operating Income Sales = $500,000 $4,500,000...If you want to buzz off a full essay, enjoin it on our website: Ordercustompaper.com

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