Homework Answers
OPTION: $210000
EXPLANATION:
Total assets = operating income/return on investment
= $73500/35%
= $210000
Add Answer to:
Pirate Enterprises has operating income of $73.500 Its return on investment (ROI) is 35%, while its...
ROI and Residual Income: Impact of a New Investment The Mustang Division of Detroit Motors had an operating income of $7...
ROI and Residual Income: Impact of a New Investment The Mustang Division of Detroit Motors had an operating income of $700,000 and net assets of $4,000,000. Detroit Motors has a target rate of return of 16 percent. (a) Compute the return on investment. (Round your answer to three decimal places.) (b) Compute the residual income. (c) The Mustang Division has an opportunity to increase operating income by $200,000 with an $950,000 investment in assets. 1. Compute the Mustang Division's return...
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...
Question 1: Return on investment (ROI), residual income (RI) Generic Motors Corporation has two divisions. Division...
Question 1: Return on investment (ROI), residual income (RI) Generic Motors Corporation has two divisions. Division A Division B Investment (operating assets) | $400,000 $1,600,000 Profit $72,000 $224,000 The required rate of return (cost of capital) is 10% a year. a) Compute return on investment (ROI) for each division. ROI for A = % (if your answer is 9.5%, enter 9.5 without the percent sign) ROI for B = % b) Compute the residual income (RI) for each division. RI...
31) Which of the following will not result in an increase in return on investment (ROI),...
31) Which of the following will not result in an increase in return on investment (ROI), assuming 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. 32) Tennill Inc. has a $1,400,000 investment opportunity with the following characteristics: Sales $ 4,480,000 40 % of sales Contribution margin ratio Fixed expenses S 1,657,600 The ROI for this year's investment opportunity is closest...
Maizy Enterprises has a target rate of returm of 7 %, an ROI of 36% ,...
Maizy Enterprises has a target rate of returm of 7 %, an ROI of 36% , and capital turnover of 2. The sales margin for Maizy Enterprises may be closest to A. 4% О В. 18%. ОС. 14%. D. 72%
Return on investment and residual income Welch Insurance Company (WIC) earned operating income of $24,000,000 on...
Return on investment and residual income Welch Insurance Company (WIC) earned operating income of $24,000,000 on operating assets of $200,000,000 during 2018. The Automobile Insurance Division earned $4,770,000 on operating assets of $36,000,000. WIC has offered the Automobile Division $4,000,000 of additional operating assets. The manager of the Automobile Insurance Division believes she could use the additional assets to generate operating income amounting to $480,000. WIC has a desired return on investment (ROI) of 10 percent. Required a. Calculate the...
Problem 11-15 Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Problem 11-15 Return on Investment...
Problem 11-15 Return on Investment (ROI) and Residual Income
[LO11-1, LO11-2]
Problem 11-15 Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Ending Balance Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance sheet Beginning Balance Assets Cash $ 125,000 Accounts receivable 339,000 Inventory 570,000 Plant and equipment, net 826,000 Investment in Buisson, S.A. 398,000 Land (undeveloped) 250,000 Total assets $ 2,508,000 Liabilities and stockholders' Equity Accounts payable $ 371,000 Long-term debt 976,000...
Calculating Average Operating Assets, Margin, Tumover, Return on Investment (ROI) Forchen, Inc., provided the following information...
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...
ROI and Residual Income: Impact of a New Investment The Mustang Division of Detroit Motors had...
ROI and Residual Income: Impact of a New Investment The Mustang Division of Detroit Motors had an operating income of $900,000 and net assets of $4,000,000. Detroit Motors has a target rate of return of 16 percent. (a) Compute the return on investment. (Round your answer to three decimal places.) 22.5 (b) Compute the residual income. $ 260,000 (c) The Mustang Division has an opportunity to increase operating income by $250,000 with an $750,000 investment in assets. 1. Compute the...
ROI and Residual Income: Impact of a New Investment The Mustang Division of Detroit Motors had...
ROI and Residual Income: Impact of a New Investment The Mustang Division of Detroit Motors had an operating income of $900,000 and net assets of $5,000,000. Detroit Motors has a target rate of return of 16 percent. (a) Compute the return on investment. (Round your answer to three decimal places.) Answer (b) Compute the residual income. $Answer (c) The Mustang Division has an opportunity to increase operating income by $200,000 with an $850,000 investment in assets. 1. Compute the Mustang...
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...
Question 1: Return on investment (ROI), residual income (RI) Generic Motors Corporation has two divisions. Division A Division B Investment (operating assets) | $400,000 $1,600,000 Profit $72,000 $224,000 The required rate of return (cost of capital) is 10% a year. a) Compute return on investment (ROI) for each division. ROI for A = % (if your answer is 9.5%, enter 9.5 without the percent sign) ROI for B = % b) Compute the residual income (RI) for each division. RI...
31) Which of the following will not result in an increase in return on investment (ROI), assuming 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. 32) Tennill Inc. has a $1,400,000 investment opportunity with the following characteristics: Sales $ 4,480,000 40 % of sales Contribution margin ratio Fixed expenses S 1,657,600 The ROI for this year's investment opportunity is closest...
Maizy Enterprises has a target rate of returm of 7 %, an ROI of 36% , and capital turnover of 2. The sales margin for Maizy Enterprises may be closest to A. 4% О В. 18%. ОС. 14%. D. 72%
Return on investment and residual income Welch Insurance Company (WIC) earned operating income of $24,000,000 on operating assets of $200,000,000 during 2018. The Automobile Insurance Division earned $4,770,000 on operating assets of $36,000,000. WIC has offered the Automobile Division $4,000,000 of additional operating assets. The manager of the Automobile Insurance Division believes she could use the additional assets to generate operating income amounting to $480,000. WIC has a desired return on investment (ROI) of 10 percent. Required a. Calculate the...
Problem 11-15 Return on Investment (ROI) and Residual Income
[LO11-1, LO11-2]
Problem 11-15 Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Ending Balance Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance sheet Beginning Balance Assets Cash $ 125,000 Accounts receivable 339,000 Inventory 570,000 Plant and equipment, net 826,000 Investment in Buisson, S.A. 398,000 Land (undeveloped) 250,000 Total assets $ 2,508,000 Liabilities and stockholders' Equity Accounts payable $ 371,000 Long-term debt 976,000...
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...
ROI and Residual Income: Impact of a New Investment The Mustang Division of Detroit Motors had an operating income of $900,000 and net assets of $4,000,000. Detroit Motors has a target rate of return of 16 percent. (a) Compute the return on investment. (Round your answer to three decimal places.) 22.5 (b) Compute the residual income. $ 260,000 (c) The Mustang Division has an opportunity to increase operating income by $250,000 with an $750,000 investment in assets. 1. Compute the...
Most questions answered within 3 hours.
-
> Women’s pulse rates are normally distributed with a mean of
68.5 beats per minute and...
asked 2 minutes ago -
Briefly describe an aspect of the strengths perspective that is
consistent with your own understanding of...
asked 3 minutes ago -
Step by step method of using Sparse Identification of Nonlinear
Dynamics (SINDy) to model your own...
asked 11 minutes ago -
3) What are the typical social structures in a global city?
asked 3 hours ago -
Luther Corporation
Consolidated Balance Sheet
December 31, 2019 and 2018 (in $ millions)
Assets
2019
2018...
asked 3 hours ago -
(Expected rate of return and risk) Carter Inc. is evaluating a
security. Calculate the investment’s expected...
asked 6 hours ago -
What specific indicators can point to lack of progress for
African Americans in American society?
asked 7 hours ago -
1-The Electrons in a beam are moving at 2.7×108 m/s in an
electric field of 15000...
asked 7 hours ago -
A gas tank is a vertical cylinder. It has a radius of 1m, a
height of...
asked 7 hours ago -
Accent Software faces the following conditions. All of these
support Accent’s use of a market-penetration pricing...
asked 8 hours ago -
A mathematically inclined friend emails you the following
instructions: "Meet me in the cafeteria the first...
asked 8 hours ago -
A monopoly sells in two countries . The demand curves in the two
countries are p1...
asked 9 hours ago