Gooding Custom Design Generated $320,000 in Operating Income on Sales

question 81

Essay

Gooding Custom Design generated $320,000 in operating income on sales revenue of $2,500,000.The company had $3,000,000 in assets on January 1 and $3,250,000 in assets on December 31.
Required:
a.Calculate Gooding's margin.
b.Calculate Gooding's asset turnover.
c.Calculate Gooding's return on investment.

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Definitions:

Detachable Small Plants

Plants that can naturally or artificially separate from the parent plant to propagate asexually and form new individual plants.

Parent Plant

The original plant from which cuttings, seeds, or other reproductive material is taken for the purpose of propagation.

Enlarged Underground Stem

A specialized plant structure, such as a tuber or rhizome, that stores nutrients and helps in vegetative reproduction.

Food Storage

The practice of keeping food in such a manner as to prevent spoilage or contamination, ensuring it remains safe and nutritious for future consumption.