The income statement comparison for rush delivery company shows the income statement for the current and prior year. required: a) determine the operating income (loss) for each year. (2 marks) b) determine the operating income (% of sales) for each year. (2 marks) c) the company made a strategic decision to invest in additional assets in the current year. these amounts are provided. using the total assets amounts as the investment base, calculate the roi. was the decision to invest additional assets in the company successful? explain. (3.5 marks) d) assuming an 8% cost of capital, calculate the ri for each year. explain how this compares to your findings in (c). (3.5 marks)

Company's average operating assets for last year is $193000, company's margin is 15%, return on investment is 42%, company's residual income for last year is $521000.

Given the balance sheet and income statement of Joel de Paris and we have to calculate company's average operating assets for last year, company's margin,return on investment and company's residual income for last year.

1) Company's average operating assets=

(beginning operating assets+closing operating assets)/2

={(2562000-349000-253000)+(2634000-434000-25000)}/2

=(1910000+1950000)/2

=3860000/2

=$1930000

2)Company's margin= net operating income/ sales

=810000/540400

=15%

3)Turnover=sales/average inventory

=540400/1930000*100

=27.9%

=28%

4) Return on investment=margin* turnover

=15% of 28%

=42%.

Hence company's average operating assets for last year is $193000, company's margin is 15%, return on investment is 42%, company's residual income for last year is $521000.

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The question is incomplete and the information of question is in figure.