Craycraft Inc

question 112

Essay

Craycraft Inc.reported the following results from last year's operations:
At the beginning of this year,the company has a $800,000 investment opportunity with the following characteristics:
Required:
1.What was last year's margin? (Round to the nearest 0.1%.)
2.What was last year's turnover? (Round to the nearest 0.01.)
3.What was last year's return on investment (ROI)? (Round to the nearest 0.1%.)
4.If the company pursues the investment opportunity and otherwise performs the same as last year,what will be the overall margin this year? (Round to the nearest 0.1%.)
5.If the company pursues the investment opportunity and otherwise performs the same as last year,what will be the overall turnover this year? (Round to the nearest 0.01.)
6.If the company pursues the investment opportunity and otherwise performs the same as last year,what will be the overall ROI will this year? (Round to the nearest 0.1%.)

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Definitions:

Trade Acceptance

A written instrument, drawn by the seller on the buyer, who accepts it, indicating the buyer’s commitment to pay the seller for goods at a future date.

Domestic Sale

A commercial transaction involving goods or services that takes place within the same country.

Specified Amount

denotes a particular sum of money that is clearly stated in a contract or agreement.

Draft

An initial version of a document or plan that is subject to revisions and improvements.