Canada Hello Everyone: Simple Accounting question. Help please. :)

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Hello everyone. :)

I was hoping someone could help explain to me how to calculate the Average Operating Asset (I cannot locate a formula or explanation anywhere unfortunately)? I am calculating it for the ROI, Margin, Turnover & Residual Income. Thank you very much!
 
J

John Baker


Note: this is a oversimplification, but it may be useful. In practice, what goes into this makeup is a mixture of all kinds of assumptions, methods of valuation - tax implications Vs current value, and a lot of other inputs. Also, different functions of business - credit applications/ worthiness, industry surveys and other agendas can influence these numbers greatly.
 

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