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MBA560 Financial and Managerial Accounting Module 8 Problem 1 - Creighton Company




Question;MBA 560 Financial and Managerial Accounting;Module 8;Problem 1.;Creighton Company's balance sheet and income statement are provided;below.;Creighton Company;Balance Sheet;December 31, 2012;Cash 21,000;Accounts receivable 24,000;Inventory 15,000;Plant and equipment, net of depreciation 144,000;Land held for future plant expansion;36,000;Total Assets 240,000;Liabilities and Stockholders' Equity;Accounts payable;18,000;Notes payable 30,000;Capital stock, no par;120,000;Retained earnings;72,000;Total Liabilities and stockholders' equity 240,000;Creighton Company;Balance Sheet;December 31, 2012;Sales 159,000;Less: variable costs;Manufacturing 31,000;Selling and administrative 25,000;Contribution margin 103,000;Less: Fixed costs;Manufacturing 31,000;Selling and administrative 22,500;Operating income;49,500;Required;1) Compute the margin, turnover, and return on investment for Creighton;Company;2) What is the advantage of expanding the ROI formula to measure margin;and turnover separately?


Paper#37669 | Written in 18-Jul-2015

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