Acc206 Principles of Accounting: P24-26 Draper Consulting reported 2013 sales of $3,750,000

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Acc206 Principles of Accounting

P24-26 Using ROI, RI, and EVA to evaluated investment centers [10-15min]
This problem continues the Draper Consulting, Inc., situation from Problem 23-39 of Chapter 23.

Draper Consulting reported 2013 sales of $3,750,000 and operating income of $210,000. Average total assets during 2013 were $600,000 and total liabilities at the end of 2013 were $180,000. Draper's target rate of return is 14% and WACC is 7%. It's 2013 tax rate was 36%.

1. Calculate Draper's profit margin, asset turnover and EVA for 2013.
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