Homework Answers
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Option E is the answer Profit Margin and investment turnover |
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Return on investment is the return generated by the operating assets. ROI = Margin * turnover |
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Return on investment can be split into which of the following two measures? Multiple Choice Investment...
Calculating return on investment for an investment center is defined by the following formula: Multiple Choice...
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..
Mastery Problem: Return on Investment, margin, and turnover Return on Investment (ROI) The manager of an...
Mastery Problem: Return on Investment, margin, and turnover Return on Investment (ROI) The manager of an investment center should be evaluated based on revenues, costs, and investments. An evaluation based on net income ignores the amount of investment the investment center required. One way to measure operating profit in relation to investment is a calculation called the return on investment. One formula for calculating return on investment is: Operating income Invested Assets ROI is effective because it takes into consideration...
Which of the following statements is true about return on equity (ROE)? Multiple Choice It measures...
Which of the following statements is true about return on equity (ROE)? Multiple Choice It measures the return on common stockholders’ investment in the assets of the firm. The value of the firm’s ROE is affected by net income. The value of the firm’s ROE is affected by the amount of financial leverage or debt that the firm uses. All of these choices are correct.
Use the following information for the Exercises below. [The following information applies to the questions displayed...
Use the following information for the Exercises below. [The following information applies to the questions displayed below.) Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Electronics Sporting goods Sales Income $45,000,000 $3,420,000 25,200,000 2,520,000 Average Invested Assets $18,000,000 14,000,000 Exercise 24-10 Computing return on investment and residual income; investing decision LO A1 1. Compute return on investment for each department. Using return on investment, which department...
answer with details or by law increase in return on investment (ROI), assuming Which of the...
answer with details or by law
increase in return on investment (ROI), assuming Which of the following will not result in a other factors remain the same? A. A reduction in expenses. B. An increase in net operating income C. An increase in operating assets D. An increase in sales. 4. The Northern Division of the Smith Come last year. If the minimum required rate of return Company had average operating assets totaling $150,000 a Northem was $20,000, then the...
Megamart, a retailer of consumer goods, provides the following information on two of its departments (each...
Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Average Invested Assets $16,900,000 12,900,000 Investment Center Sales Income $42,250,000 $3,211,000 2,322,000 Electronics Sporting goods 19,350,000 Exercise 9-10 Computing return on investment and residual income; investing decision LO A1 1 Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2. Assume a target income...
Required information (The following information applies to the questions displayed below.] Megamart, a retailer of consumer...
Required information (The following information applies to the questions displayed below.] Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Electronics Sporting goods Sales Income $42,250,000 $3,211,000 19,350,000 2,322,000 Average Invested Assets $16,900,000 12,900,000 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2. Assume a target income level of...
QUESTION 10 Which of the following statements is correct concerning return on investment calculations? Margin equals...
QUESTION 10 Which of the following statements is correct concerning return on investment calculations? Margin equals stockholders' equity divided by sales Return on investment equals margin divided by turnover. Turnover equals return on investment divided by margin. Sales equals turnover divided by margin. QUESTION 11 Which of the following will NOT result in an increase in the residual income, assuming other factors remain constant? An increase in sales. An increase in the minimum required rate of return OA decrease in...
Required Information Use the following Information for the Exercises below. [The following information applies to the...
Required Information Use the following Information for the Exercises below. [The following information applies to the questions displayed below.) Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an Investment center). Investment Center Electronics Sporting goods Sales Income $40, 250, eee 53, es9, eee 21,780,000 2,175,000 Average Invested Assets $16,1ee, eee 12,100,000 Exercise 22-10 Computing return on investment and residual income; investing decision LO A1 1. Compute return on investment for each...
When comparing two different investment alternatives, which of the following measures for each alternative would be...
When comparing two different investment alternatives, which of the following measures for each alternative would be the best to use? Contribution margin ratio Residual income Return on investment Net income
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..
Use the following information for the Exercises below. [The following information applies to the questions displayed below.) Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Electronics Sporting goods Sales Income $45,000,000 $3,420,000 25,200,000 2,520,000 Average Invested Assets $18,000,000 14,000,000 Exercise 24-10 Computing return on investment and residual income; investing decision LO A1 1. Compute return on investment for each department. Using return on investment, which department...
answer with details or by law
increase in return on investment (ROI), assuming Which of the following will not result in a other factors remain the same? A. A reduction in expenses. B. An increase in net operating income C. An increase in operating assets D. An increase in sales. 4. The Northern Division of the Smith Come last year. If the minimum required rate of return Company had average operating assets totaling $150,000 a Northem was $20,000, then the...
Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Average Invested Assets $16,900,000 12,900,000 Investment Center Sales Income $42,250,000 $3,211,000 2,322,000 Electronics Sporting goods 19,350,000 Exercise 9-10 Computing return on investment and residual income; investing decision LO A1 1 Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2. Assume a target income...
Required information (The following information applies to the questions displayed below.] Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Electronics Sporting goods Sales Income $42,250,000 $3,211,000 19,350,000 2,322,000 Average Invested Assets $16,900,000 12,900,000 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2. Assume a target income level of...
QUESTION 10 Which of the following statements is correct concerning return on investment calculations? Margin equals stockholders' equity divided by sales Return on investment equals margin divided by turnover. Turnover equals return on investment divided by margin. Sales equals turnover divided by margin. QUESTION 11 Which of the following will NOT result in an increase in the residual income, assuming other factors remain constant? An increase in sales. An increase in the minimum required rate of return OA decrease in...
Required Information Use the following Information for the Exercises below. [The following information applies to the questions displayed below.) Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an Investment center). Investment Center Electronics Sporting goods Sales Income $40, 250, eee 53, es9, eee 21,780,000 2,175,000 Average Invested Assets $16,1ee, eee 12,100,000 Exercise 22-10 Computing return on investment and residual income; investing decision LO A1 1. Compute return on investment for each...
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