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:

Gain

An increase in wealth, resources, or advantages, often realized through investment, business operations, or other economic activities.

Existing Partners

Current collaborative entities or individuals that are engaged in a business agreement or relationship with one another.

Key Managers

Critical individuals within an organization responsible for making important decisions and driving its success.

Harvest Vehicles

Strategies or methods used by entrepreneurs and investors to exit a business while realizing the venture's value.