Alyeska Services Company, a division of a major oil company, provides various se

Question

Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below:

Sales $ 18,500,000

Net operating income $ 5,300,000

Average operating assets $ 35,200,000

1. value: 10 points Requirement 1: Compute the margin for Alyeska Services Company. (Omit the "%" sign in your response.) Margin % eBook Linkreferences

2. value: 10 points Requirement 2: Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.) Turnover eBook Linkreferences

3. value: 10 points Requirement 3: Compute the return on investment (ROI) for Alyeska Services Company. (Omit the "%" sign in your response.) ROI %

Explanation / Answer

1. Margin = (Net operating income) / Sales = $5,300,000 / $18,500,000 = 0.29

2. Turnover = Sales / (Average operating assets) = $18,500,000 / $35,200,000 = 0.53

3. Return on investment = (Net operating income) / (Average operating assets)

                                        = $5,300,000 / $35,200,000

                                        = 0.15

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.