Check my work Alyeska Services Company, a division of a major oil company, provi

Question

Check my work 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: 10 points Sales Net operating income Average operating assets s 19,000,000 $ 5,400,000 37,000,000 eBook Required: 1. Compute the margin for Alyeska Services Company. (Round your answer to 2 decimal places.) 2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.) 3. Compute the return on investment (ROl) for Alyeska Services Company. (Round your intermediate calculations and final answer to Hint Print References2 decimal places.) 1. Margin 2. Turnover 3. ROI

Explanation / Answer

1) Margin = Net income*100/margin = 5400000*100/19000000 = 28.42%

Turnover = Sales/average operating assets = 19000000/37000000 = 0.51

ROI = Net income*100/Average operating assets = 5400000*100/3700000 = 14.59%

2) Residual income = Net operating income-Minimum operating income

= 490000-(2000000*13%)

Residual income = 230000

Note : Please post next question individually for answer because its not related answer

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