The Following Information Is Available for the Denison Company $$\begin{array} { l l } \text { Sales } & \$ 3,000,000 \\\text { Invested capital } & 500,000 \\\text { ROI } & 15 \%\end{array}$$

question 120

Essay

The following information is available for the Denison Company: $$\begin{array} { l l } \text { Sales } & \$ 3,000,000 \\\text { Invested capital } & 500,000 \\\text { ROI } & 15 \%\end{array}$$ Compute:
a. capital turnover
b. net income
c. return on sales

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Definitions:

Equipment

Tangible property used in operations, such as machinery, computers, and tools, that is not intended for sale.

Inventory Controls

Systems and procedures implemented by a company to manage its inventory efficiently and minimize costs.

Merchandise

Goods that are bought and sold by a business in the regular course of its operation.

Adjusted Trial Balance

A statement prepared after adjusting entries are made, used to verify the balance of debits and credits before preparing financial statements.