Homework Answers
13.
RESIDUAL INCOME =NET OPERATING INCOME -REQUIRED RATE OF RETURN*NET AVERAGE OPERATING ASSETS
$36000-$300000*15%
=$(9000)
14.
RESIDUAL INCOME=NET OPERATING INCOME -REQUIRED RATE OF RETURN*NET AVERAGE OPERATING ASSETS
$560000-$4000000*12%
=$80000
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13. The following information pertains to the three divisions of Marlow Company: Division Z Division Y...
The following information pertains to the three divisions of Yang Limited: Division C $1,345,000 $82,000 Division...
The following information pertains to the three divisions of Yang Limited: Division C $1,345,000 $82,000 Division B Division A Sales Net operating income 418,000 $48,000 Average operating $420,000 ? assets Return on ? 20% 15% investment Margin Turnover 0.2 0.015 ? 2.1 ? Target ROI 17% 14% 8% 8 What are the average operating assets for Division C? A. $95,000 $410,000 В. С. $82,000 $420,000 D. 9. What are the average operating assets for Division B? A. $125,000 $120,000 $18,000...
The following information pertains to the three divisions of Yang Company: Division A Division B Division...
The following information pertains to the three divisions of Yang Company: Division A Division B Division C Sales ? ? $1,345,000 Net operating income $48,000 $18,000 $82,000 Average operating assets $420,000 ? ? Return on investment ? 15% 20% Margin 0.2 0.015 ? Turnover 2.1 ? ? Target ROI 17% 14% 8% What is the turnover for Division C? a.6.670 b.3.28 c.1.500 d.0.20
Division C $1,345,000 $82,000 The following information pertains to the three divisions of Yang Limited: Division...
Division C $1,345,000 $82,000 The following information pertains to the three divisions of Yang Limited: Division A Division B Sales ? Net operating $48,000 418,000 income Average operating $420,000 assets Return on 15% investment Margin 0.2 0.015 Turnover 2.1 Target ROI 17% 14% 20% 8% What are the average operating assets for Division C? $95,000 $410,000 $82,000 $420,000 What are the average operating assets for Division B? $125,000 $120,000 $18,000 $420,000
Division C $1,345,000 $82,000 The following information pertains to the three divisions of Yang Limited: Division...
Division C $1,345,000 $82,000 The following information pertains to the three divisions of Yang Limited: Division A Division B Sales ? ? Net operating $48,000 418,000 income Average operating $420,000 ? assets Return on 15% investment Margin 0.2 0.015 Turnover 2.1 Target ROI 17% 14% ? 20% ? 8% 8. What are the average operating assets for Division C? $95,000 $410,000 $82,000 $420,000 What are the average operating assets for Division B? $125,000 $120,000 $18,000 $420,000
Walton Cough Drops operates two divisions. The following information pertains to each division for 2018: Sales...
Walton Cough Drops operates two divisions. The following information pertains to each division for 2018: Sales Operating income Average operating assets Company's desired rate of return Division A $200,000 $ 16,400 $ 54,000 13% Division B $ 89,000 $ 8,900 $41,000 13% Required a. Compute each division's residual income. b. Which division increased the company's profitability more? Residual Income a. Division A Division B b. The division that increased the company's profitability more is
(Just need Req 2 for both questions) Comparative data on three companies in the same service...
(Just need Req 2 for both questions)
Comparative data on three companies in the same service industry are given below: Required: 2. Fill in the missing information. (Round the "Margin" answers to 1 decimal place and "Turnover" answers to 2 decimal places.) Company В C $ $ Sales 600,000 500,000 84,000 70,000 Net operating income $ $ 300,000 1,000,000 Average operating assets 3.5% Margin % % Turnover 2.00 % 7 % Return on investment (ROI) % Exercise 10-12 Evaluating New...
The Labrador Falls Company has three divisions: A Division, B Division, and C Division. A B...
The Labrador Falls Company has three divisions: A Division, B Division, and C Division. A B C Sales $ 323,000 $ 543,000 ? Net operating income 61,500 ? $ 24,300 Residual income ? 37,500 14,700 Average Division Assets ? ? 81,500 Cost of Capital 12 % 10 % ? Profit Margin 20 % 4 % ? Asset Turnover ? 1 ? Return on investment 15 % ? ? What was A Division's residual income last year?
Selected sales and operating data for three divisions of different structural engineering firms are Division A...
Selected sales and operating data for three divisions of different structural engineering firms are Division A $7,300,000 $ 1,460,000 467,200 27.008 Division B Division c Sales $ 11,300,000 $ 5,650,000 $ 1,175,200 $10,400,000 $2,080,000 Average operating assets Net operating income Minimum required rate of return 379,600 20.80% 24.00% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of 2. Compute the residual income (loss) for each division. B. Assume that each division...
ABC Company operates two divisions with the following operating information for the month of May: Division...
ABC Company operates two divisions with the following operating
information for the month of May:
Division 1: sales, $120,000; operating income, $36,000; operating
assets, $300,000.
Division 2: sales, $80,000; operating income, $40,000; operating
assets, $400,000.
ABC Company expects a minimum return of 10% should be earned from
all investments.
Required:
a. Prepare ABC Company’s ROI analysis using the DuPont
model for each division. (Round Turnover rate answers to
one decimal place.)
Division 1 Division 2 DuPont Performance Analysis: Revenues Operating...
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C $6,100,000 $10,100,000 $9,200,000 $1,525,000 $ 5...
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C $6,100,000 $10,100,000 $9,200,000 $1,525,000 $ 5,050,000 $2,300,000 Sales Average operating assetS Net operating income $ 317,200 $ 929,200 $ 225,400 Minimum required ratee of return 15.00% 18.40% 12.00% Required 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover 2. Compute the residual income (loss) for each...
The following information pertains to the three divisions of Yang Limited: Division C $1,345,000 $82,000 Division B Division A Sales Net operating income 418,000 $48,000 Average operating $420,000 ? assets Return on ? 20% 15% investment Margin Turnover 0.2 0.015 ? 2.1 ? Target ROI 17% 14% 8% 8 What are the average operating assets for Division C? A. $95,000 $410,000 В. С. $82,000 $420,000 D. 9. What are the average operating assets for Division B? A. $125,000 $120,000 $18,000...
Division C $1,345,000 $82,000 The following information pertains to the three divisions of Yang Limited: Division A Division B Sales ? Net operating $48,000 418,000 income Average operating $420,000 assets Return on 15% investment Margin 0.2 0.015 Turnover 2.1 Target ROI 17% 14% 20% 8% What are the average operating assets for Division C? $95,000 $410,000 $82,000 $420,000 What are the average operating assets for Division B? $125,000 $120,000 $18,000 $420,000
Division C $1,345,000 $82,000 The following information pertains to the three divisions of Yang Limited: Division A Division B Sales ? ? Net operating $48,000 418,000 income Average operating $420,000 ? assets Return on 15% investment Margin 0.2 0.015 Turnover 2.1 Target ROI 17% 14% ? 20% ? 8% 8. What are the average operating assets for Division C? $95,000 $410,000 $82,000 $420,000 What are the average operating assets for Division B? $125,000 $120,000 $18,000 $420,000
Walton Cough Drops operates two divisions. The following information pertains to each division for 2018: Sales Operating income Average operating assets Company's desired rate of return Division A $200,000 $ 16,400 $ 54,000 13% Division B $ 89,000 $ 8,900 $41,000 13% Required a. Compute each division's residual income. b. Which division increased the company's profitability more? Residual Income a. Division A Division B b. The division that increased the company's profitability more is
(Just need Req 2 for both questions)
Comparative data on three companies in the same service industry are given below: Required: 2. Fill in the missing information. (Round the "Margin" answers to 1 decimal place and "Turnover" answers to 2 decimal places.) Company В C $ $ Sales 600,000 500,000 84,000 70,000 Net operating income $ $ 300,000 1,000,000 Average operating assets 3.5% Margin % % Turnover 2.00 % 7 % Return on investment (ROI) % Exercise 10-12 Evaluating New...
Selected sales and operating data for three divisions of different structural engineering firms are Division A $7,300,000 $ 1,460,000 467,200 27.008 Division B Division c Sales $ 11,300,000 $ 5,650,000 $ 1,175,200 $10,400,000 $2,080,000 Average operating assets Net operating income Minimum required rate of return 379,600 20.80% 24.00% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of 2. Compute the residual income (loss) for each division. B. Assume that each division...
ABC Company operates two divisions with the following operating
information for the month of May:
Division 1: sales, $120,000; operating income, $36,000; operating
assets, $300,000.
Division 2: sales, $80,000; operating income, $40,000; operating
assets, $400,000.
ABC Company expects a minimum return of 10% should be earned from
all investments.
Required:
a. Prepare ABC Company’s ROI analysis using the DuPont
model for each division. (Round Turnover rate answers to
one decimal place.)
Division 1 Division 2 DuPont Performance Analysis: Revenues Operating...
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C $6,100,000 $10,100,000 $9,200,000 $1,525,000 $ 5,050,000 $2,300,000 Sales Average operating assetS Net operating income $ 317,200 $ 929,200 $ 225,400 Minimum required ratee of return 15.00% 18.40% 12.00% Required 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover 2. Compute the residual income (loss) for each...
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