Figure 12-7 Monfett Manufacturing Earned Operating Income Last Year as Shown in Shown

Essay

Figure 12-7
Monfett Manufacturing earned operating income last year as shown in the following income statement:
At the beginning of the year,the value of operating assets was $263,000.At the end of the year,the value of operating assets was $336,000.Monfett Manufacturing requires a minimum rate of return of 15%.Total capital employed equal $350,000 and actual cost of capital is 6%.
Refer to Figure 12-7.Calculate the following:
(Carry computations out to two decimal places.)