4. The denominator in the formula for calculating the return on investment includes operating and nonoperating...
Question 5 (1 point) The denominator in the formula for return on investment calculation is a) investment center average operating assets. b) sales for the period. c) dependent on the specific type of profit center. d) investment center controllable margin.
Calculating return on investment for an investment center is defined by the following formula: Multiple Choice ). Contribution margin/Ending assets. O Gross profit/Ending assets. O Net income/Ending assets. O Income/Average invested assets. Contribution margin/Average invested assets..
Calculating Average Operating Assets, Margin, Turnover, and Return on Investment Barnard Manufacturing earned operating income last year as shown in the following income statement: Sales $4,000,000 Cost of goods sold 2,100,000 Gross margin $1,900,000 Selling and administrative expense 1,100,000 Operating income $ 800,000 Less: Income taxes (@ 40%) 320,000 Net income $480,000 At the beginning of the year, the value of operating assets was $2,700,000. At the end of the year, the value of operating assets was $2,300,000. Required: For...
Calculating Average Operating Assets, Margin, Turnover, and Return on Investment East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales $531,250 Cost of goods sold 280,000 Gross margin $251,250 Selling and administrative expense 185,100 Operating income $66,150 Less: Income taxes (@ 40%) 26,460 Net income $39,690 At the beginning of the year, the value of operating assets was $390,000. At the end of the year, the value of operating assets was $460,000. Required: For...
$ millions Operating assets Nonoperating assets Total assets Operating liabilities Nonoperating liabilities Total liabilities Total stockholders' equity Sales Net operating profit before tax (NOPBT) Nonoperting expense before tax Tax expense Net income Jan. 31, 2016 Feb. 01, 2015 $40,333 $38,223 2,216 1,723 42,549 39,946 14,918 13,427 21,315 17,197 36,233 30,624 6,316 88,519 11,774 753 4,012 7,009 9,322 Round all answers to two decimal places (ex: 0.12345 = 12.35%) a. Compute return on equity. 89.64 % b. Compute return on net...
$ millions Operating assets Nonoperating assets Total assets Operating liabilities Nonoperating liabilities Total liabilities Total Oracle stockholders' equity Total revenues Operating income before tax Nonoperating expense before tax Tax expense Net income May 31, 2015 May 31, 2014 $62,090 $57,002 54,368 38,819 116,458 95,821 20,180 19,055 41,958 24,097 62,138 43,152 54,320 52,669 38,559 13,993 1,037 3,498 9,458 a. Compute return on equity (ROE) Round answer to two decimal places (ex: 0.12345 = 12.35%) 17.68 % b. Compute return on net...
Calculating Average Operating Assets, Margin, Tumover, Return on Investment (ROI) Forchen, Inc., provided the following information for two of its divisions for last year: Small Appliances Cleaning Products Division Division Sales $34,670,000 $29,000,000 Operating income 2,773,600 1,160,000 Operating assets, January 1 6,394,000 5,600,000 Operating assets, December 31 7,474,000 6,000,000 Required: 1. For the Small Appliances Division, calculate: a. Average operating assets b. Margin C. Turnover d. Return on investment (ROI) 2. For the Cleaning Products Division, calculate: a. Average operating...
Calculating Average Operating Assets, Margin, Turnover, Return on Investment (ROI) Forchen, Inc., provided the following information for two of its divisions for last year: Small Appliances Cleaning Products Division Division Sales Operating income Operating assets, January 1 Operating assets, December 31 Required 1. For the Small Appliances Division, calculate a. Average operating assets6,934,000 b. Margirn C. Turnover d. Return on investment (ROI) 2. For the Cleaning Products Division, calculate: a. Average operating assets5,800,000 b. Margirn C. Turnover d. Return on...
Question 6 The denominator of the rate of return on total assets ratio is the average total assets. a. False b. True
Calculating Average Operating Assets, Margin, Turnover, Return on Investment (ROI) Forchen, Inc., provided the following information for two of its divisions for last year: Small Appliances Cleaning Products Division Division Sales $34,670,000 $31,320,000 Operating income 2,773,600 1,252,800 Operating assets, January 1 6,394,000 5,600,000 Operating assets, December 31 7,474,000 6,000,000 Required: 1. For the Small Appliances Division, calculate: a. Average operating assets $ 6,934,000 b. Margin c. Turnover d. Return on investm nent (ROI) 2. For the Cleaning Products Division, calculate:...