Question

Margin, Turnover, Return on Investment, Average Operating Assets

Nakamura Company provided the following income statement for the last year:
Sales
$728,000,000
Less: Variable expenses
490,175,000
Contribution margin
$ 237,825,000
Less: Fixed expenses
128 625 000
Operating income
$ 109,200,000
At the beginning of last year, the company had $24,200,000 in operating assets. At the end of the year, the c
Required:
1.Compute average operating assets.

Answer 1

To calculate the average operating assets, add the values at the beginning and end of the year and divide by two. The beginning value is given as $24,200,000, but without the ending value, the calculation cannot be completed.

Step-by-step explanation:

To compute average operating assets, you need to take the total of the operating assets at the beginning and the end of the year, and then divide by two. The question provided only the beginning operating assets value of $24,200,000. If we were to have the ending operating assets value, we would simply add it to the beginning value and then divide by two for the average.

For example, if the ending operating assets were also $24,200,000, the calculation would be as follows:
Average Operating Assets = ($24,200,000 + $24,200,000) / 2 = $24,200,000.
However, without the ending value, it's impossible to calculate the average.