Homework Answers
Calculation of Return on Investment:
Return on Investment= (net Operating income/sales)*(sales/average operating assets)
ROI= (100000/600000)*(600000/400000)
ROI= (1/6)*(6/4)
So correct answer is A) (6/4)*(1/6)= ROI
7) calculation of return on investment:
New invested capital= 2000*(1-0.10)= 1800
Net profit= Revenue- expense
Net profit= 800-(800*0.40)= 480
Return on investment= Net profit/invested capital*100= 480/1800*100= 26.66%
So correct answer is 26.66%
Add Answer to:
The following information pertains to Bala Co, for last month's operations: Sales $600,000 Net operating income............
Bramble, Inc., reported the following results for last year. Net operating income Sales revenue Average operating...
Bramble, Inc., reported the following results for last year. Net operating income Sales revenue Average operating assets Liles Division Marston Division Outland Division $116,000 $54,700 $337,000 600,000 150,000 1,200,000 1,042,000 300,000 1,520,000 (a) Calculate margin for each division. (Round answers to 1 decimal place, e.g. 5.1%) Margin Liles % Marston Outland Which division generates the highest margin? (b) Calculate ROI for each division. (Round answers to 1 decimal place, e.g. 5.1%) Return on Investment Liles Marston Outland If the divisions...
BARR reported the following 2019 financial information: Sales = $5,200,000; Contribution margin = $600,000; Segment income...
BARR reported the following 2019 financial information: Sales = $5,200,000; Contribution margin = $600,000; Segment income = $430,000; Average investment = $1,000,000; The company's cost of capital was 12%. -The segment profit margin ratio (return on sales) is? -The asset turnover is? -The return on investment (ROI) for the BARR is? -Residual income for the BARR is?
Beta Inc has the following data for last years operations: Sales................................ $100,000 Net Operating Income........ $6,000...
Beta Inc has the following data for last years operations: Sales................................ $100,000 Net Operating Income........ $6,000 Average Operating Assets... $40,000 Stockholders Equity............... $25,000 Minimum Required rate of return. 10% a) Compute Residual Income b) Compute return of investment Alpha Corp reported operating data as follows for the past year: Sales..................$600,000 Net Operating Income....$30,000 Average Operating Assets....$200,000 Stakeholders Equity.................. $50,000 Residual Income........................ $14,000 a) Calculate Alpha's Minimum Rate of Return b)Alpha's Margin c) Alpha's turnover
Pendant Publishing reported the following results for its Textbook Division: Sales Operating income Total assets Current...
Pendant Publishing reported the following results for its Textbook Division: Sales Operating income Total assets Current liabilities $2,200,000 $440,000 $1,100,000 $1,140,000 Pendant's target rate of return is 24% and the weighted average cost of capital is 14%, its effective tax rate is 25% What is the Textbook Division's Return on Investment (ROI)? A. OB. OC. OD. 40.00% 20.00% 200.00% 51.82% Click to select your answer.
The South Division of Sheridan Company reported the following data for the current year. Sales $3,050,000 Variable...
The South Division of Sheridan Company reported the following
data for the current year.
Sales
$3,050,000
Variable costs
2,013,000
Controllable fixed costs
600,000
Average operating assets
5,000,000
Top management is unhappy with the investment center’s return on
investment (ROI). It asks the manager of the South Division to
submit plans to improve ROI in the next year. The manager believes
it is feasible to consider the following independent courses of
action.
1.
Increase
sales by $300,000 with no change in...
The contribution format income statement for Huecia Company for last year is given below: Unit Sales...
The contribution format income statement for Huecia Company for last year is given below: Unit Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 30% Net operating income Total $4,000,000 2,800,000 1,200,000 840,000 360,000 108,000 $ 252,000 $80.00 56.00 24.00 16.80 7.20 2.16 $ 5.04 The company had average operating assets of $2,000,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms of...
The contribution format income statement for Huerra Company for last year is given below: Sales Variable...
The contribution format income statement for Huerra Company for last year is given below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 30% Net income Total Unit $4,000,000 $80.00 2,800,000 56.00 1,200,000 24.00 840,000 16.80 360,000 7.20 108,000 2.16 $ 252,000 $ 5.04 The company had average operating assets of $2,000,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms of margin...
CDM Corporation has multiple segments. Segment 1 has sales of $3,000,000, net operating income of $80,000,...
CDM Corporation has multiple segments. Segment 1 has sales of $3,000,000, net operating income of $80,000, and average operating assets of $1,000,000. The company's minimum required rate of return is 6%. What is the Return on Investment (ROI) for the segment? % What is the residual income of the segment? $ The segment reduces its average operating assets to $800,000, which lowers its net operating income to $64,000. What is the new Return on Investment (ROI) for the segment? % What is...
Exercise 10-17 (Video) The South Division of Wiig Company reported the following data for the current year Sales $3,000...
Exercise 10-17 (Video) The South Division of Wiig Company reported the following data for the current year Sales $3,000,000 Variable costs 1,950,000 Controllable fixed costs 600,000 Average operating assets 5,000,000 Top management is unhappy with the investment center's return on investment (ROI). It asks the manager believes it is feasible to consider the following independent courses of action the South Division to submit plans to improve ROI in the next year. The manager 1. Increase sales by $300,000 with no...
The contribution format income statement for Huerra Company for last year is given below: Sales Variable...
The contribution format income statement for Huerra Company for last year is given below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 30% Net income Total Unit $4,000,000 $80.00 2,800,000 56.00 1,200,000 24.00 840,000 16.80 360,000 7.20 108,000 2.16 $ 252,000 $ 5.04 The company had average operating assets of $2,000,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms of margin...
Bramble, Inc., reported the following results for last year. Net operating income Sales revenue Average operating assets Liles Division Marston Division Outland Division $116,000 $54,700 $337,000 600,000 150,000 1,200,000 1,042,000 300,000 1,520,000 (a) Calculate margin for each division. (Round answers to 1 decimal place, e.g. 5.1%) Margin Liles % Marston Outland Which division generates the highest margin? (b) Calculate ROI for each division. (Round answers to 1 decimal place, e.g. 5.1%) Return on Investment Liles Marston Outland If the divisions...
Pendant Publishing reported the following results for its Textbook Division: Sales Operating income Total assets Current liabilities $2,200,000 $440,000 $1,100,000 $1,140,000 Pendant's target rate of return is 24% and the weighted average cost of capital is 14%, its effective tax rate is 25% What is the Textbook Division's Return on Investment (ROI)? A. OB. OC. OD. 40.00% 20.00% 200.00% 51.82% Click to select your answer.
The South Division of Sheridan Company reported the following
data for the current year.
Sales
$3,050,000
Variable costs
2,013,000
Controllable fixed costs
600,000
Average operating assets
5,000,000
Top management is unhappy with the investment center’s return on
investment (ROI). It asks the manager of the South Division to
submit plans to improve ROI in the next year. The manager believes
it is feasible to consider the following independent courses of
action.
1.
Increase
sales by $300,000 with no change in...
The contribution format income statement for Huecia Company for last year is given below: Unit Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 30% Net operating income Total $4,000,000 2,800,000 1,200,000 840,000 360,000 108,000 $ 252,000 $80.00 56.00 24.00 16.80 7.20 2.16 $ 5.04 The company had average operating assets of $2,000,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms of...
The contribution format income statement for Huerra Company for last year is given below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 30% Net income Total Unit $4,000,000 $80.00 2,800,000 56.00 1,200,000 24.00 840,000 16.80 360,000 7.20 108,000 2.16 $ 252,000 $ 5.04 The company had average operating assets of $2,000,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms of margin...
Exercise 10-17 (Video) The South Division of Wiig Company reported the following data for the current year Sales $3,000,000 Variable costs 1,950,000 Controllable fixed costs 600,000 Average operating assets 5,000,000 Top management is unhappy with the investment center's return on investment (ROI). It asks the manager believes it is feasible to consider the following independent courses of action the South Division to submit plans to improve ROI in the next year. The manager 1. Increase sales by $300,000 with no...
The contribution format income statement for Huerra Company for last year is given below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 30% Net income Total Unit $4,000,000 $80.00 2,800,000 56.00 1,200,000 24.00 840,000 16.80 360,000 7.20 108,000 2.16 $ 252,000 $ 5.04 The company had average operating assets of $2,000,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms of margin...
Most questions answered within 3 hours.
-
What intermediate results after the addition of H3O+ to
E-3-methyl-2-pentane?
pentene*
asked 3 minutes ago -
Potassium hydrogen phthalate is a solid, monoprotic acid
frequently used in the laboratory to standardize strong...
asked 22 minutes ago -
1-Describe the 3 major classes of ownerships of retailers
2-What are the differences between consumer and...
asked 5 minutes ago -
A Student takes a sample from a table top in the student lounge
using a sterile...
asked 12 minutes ago -
Give an answer that's easy to understand. Define stack data
structure. Show how the Stack operations...
asked 22 minutes ago -
The following financial information is for Annapolis Corporation
are for the fiscal years ending 2019 &...
asked 11 minutes ago -
Which prezygotic barrier to reproduction results in hybrid
sterility?
Question 11 options:
A)
Habitat isolation
B)...
asked 21 minutes ago -
You own a portfolio that has $2709 invested in Stock A and $4387
invested in Stock...
asked 40 minutes ago -
A parameter estimate is said to be statistically significant if
there is sufficient evidence that the...
asked 38 minutes ago -
Based on the following table, calculate the ES, EF, LS, LF and
Slack for each activity...
asked 36 minutes ago -
The Work Breakdown Structure is always created using a phased-in
approach.
True/False
asked 53 minutes ago -
In a thermodynamically sealed container, 30.0 g of 22.0∘ ∘ C
water is mixed with 50.0...
asked 53 minutes ago