Tundra Services Company, a division of a major oil company, provides various ser

Question

Tundra 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:

Tundra 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:

Tundra 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 Net operating income Average operating assets $17,700,000 4,600,000 $35,600,000 Required: 1. Compute the margin for Tundra Services Company. (Round your answer to 2 decimal places.) Margin 2. Compute the turnover for Tundra Services Company. (Round your answer to 2 decimal places.) Turnover 3. Compute the return on investment (ROI) for Tundra Services Company. (Round your intermediate calculations and final answer to 2 decimal places.) ROI

Explanation / Answer

Sales 177,00,000 Net Operating Income 46,00,000 Average Operating Assets 356,00,000 1) Margin : Net Operating Income Sales = 46,00,000 177,00,000 = 25.99% 2) Asset Turnover = Sales Average Operating Assets = 177,00,000 356,00,000 = 0.50 3) ROI = Net Operating Income Average Operating Assets = 46,00,000 356,00,000 = 12.92%

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