Ralston Company Has Income from Operations of $75,000, Invested Assets

question 88

Essay

Ralston Company has income from operations of $75,000, invested assets of $360,000, and sales of $790,000.
Required:
Use the DuPont formula to calculate the rate of return on investment, and show (a) the profit margin, (b) the investment turnover, and (c) rate of return on investment.
Round profit margin percentage to two decimal places and investment turnover to three decimal places.

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Definitions:

Sociopath

A term often used to describe a person with antisocial personality disorder, characterized by a lack of empathy and often, but not exclusively, manifesting in manipulative, deceitful, or criminal behavior.

Serial Killer

An individual who commits a series of murders, often with no apparent motive and typically following a characteristic, predictable behavior pattern.

Limited Prosocial Emotions

Characterized by a lack of empathy, remorse, or concern for the feelings of others, often seen in certain psychological conditions.

Lack Of Remorse

A situation or condition where an individual does not feel regret or guilt for actions that typically would elicit such emotions.