Homework Answers
| Average investment | 309000 |
| X Minimum rate of return | 14% |
| Minimum required return | 43260 |
| Net Operating income | 55000 |
| Less: Minimum required return | 43260 |
| Residual Income | 11740 |
| Option A $11,740 is correct |
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Selected data from Chering Division's accounting records revealed the following: Sales Average investment Net operating income...
Selected data from Chering Division's accounting records revealed the following: Sales $ 358,600 Average investment $...
Selected data from Chering Division's accounting records revealed the following: Sales $ 358,600 Average investment $ 163,000 Net operating income $ 24,300 Minimum rate of return (divisional cost of capital) 13 % If the minimum rate of return (i.e., cost of capital) was 12%, Chering Division's residual income (RI) would calculate to be: Multiple Choice $2,920. $4,740. $18,732. $9,480. $8,320.
Selected data from Chering Division's accounting records revealed the following: Sales Average investment Net operating income...
Selected data from Chering Division's accounting records revealed the following: Sales Average investment Net operating income Minimum rate of return (divisional cost of capital) $272,640 $122,700 $ 19, 200 15% Chering Division's return on sales (ROS) is. Multiple Choice oooo
Selected data from Chering Division's accounting records revealed the following: Sales $ 252,540 Average investment $...
Selected data from Chering Division's accounting records revealed the following: Sales $ 252,540 Average investment $ 131,300 Net operating income $ 20,700 Minimum rate of return (divisional cost of capital) 13 % Chering Division's asset turnover (AT) is calculated to be: Multiple Choice 6.343. 1.586. 1.923. 4.420. 12.200.
Consider the following data from two divisions of a company. P and Q. Divisional Sales Operating...
Consider the following data from two divisions of a company. P and Q. Divisional Sales Operating Income Investment $1,500,000 $ 1,700,000 $ 600,000 $ 680,000 $1,950,000 $ 2,210,000 if the minimum rate of return is 8%, what is Division P's residual income (RI? Multiple Choice $444,000. C) $756.000 o $1,344,000 1452
The data given below are from the accounting records of the Kuhn Corporation: Net Income (accrual...
The data given below are from the accounting records of the Kuhn Corporation: Net Income (accrual basis) Depreciation Expense Decrease in Accounts Payable Decrease in Inventory Increase in Bonds Payable Sale of Common Stock for cash Increase in Accounts Receivable $55,000 $14,000 $ 3,000 $ 3,500 $15,000 $31,000 $ 5,500 Based on this information, the net cash provided by (used in) operating activities Multiple Choice $70,000 O $73.500 O $64.000 0 $79.000
Consider the following data from two divisions of a company, P and Q: Divisional P Q...
Consider the following data from two divisions of a company, P and Q: Divisional P Q Sales $ 1,000,000 $ 1,700,000 Operating Income $ 600,000 $ 680,000 Investment $ 1,700,000 $ 2,040,000 If the minimum rate of return is 10%, what is Division P's residual income (RI)? Multiple Choice $430,000. $770,000. $830,000. $940,000. $1,640,000.
Sales Variable expenses Contribution margin Fixed expenses Net operating income Divisional average operating assets $ 21,100,eee...
Sales Variable expenses Contribution margin Fixed expenses Net operating income Divisional average operating assets $ 21,100,eee 13,350,48e 7,749,6ee 5,935,e00 $ 1,814,600 $ 4,220,00e The company had an overall return on investment (ROI) of 18.00 % this year (considering all divisions). Next year the Office Products Division has an opportunity to add a new product line that would require an additional investment that would increase average operating assets by $2,262,500. The cost and revenue characteristics of the new product line per...
Selected data from Division A of Green Company are as follows: Sales Average investment Operating income Minimum ra...
Selected data from Division A of Green Company are as follows: Sales Average investment Operating income Minimum rate of return $430,000 $206,400 $ 51,600 11% Division A's asset turnover (AT) is (rounded to two decimal places): 1 0 0 0
Cabell Products is a division of a major corporation. Last year the division had total sales of $28,540,000, net operating income of $2,597,140, and average operating assets of $5,708,000. The company...
Cabell Products is a division of a major corporation. Last year the division had total sales of $28,540,000, net operating income of $2,597,140, and average operating assets of $5,708,000. The company's minimum required rate of return is 10%. The division's return on investment (ROI) is closest to: Multiple Choice 9.1% 45.5% 91.0% 20.0%
The following data are for the Akron Division of Consolidated Rubber, Inc.: Sales Net operating income...
The following data are for the Akron Division of Consolidated Rubber, Inc.: Sales Net operating income Average operating assets Stockholders' equity Residual income $940,000 $ 83,000 $ 440,000 $ 94,000 $ 34,000 For the past year, the minimum required rate of return was: Multiple Choice o 68.00% o 11.14% C ... ... ... ... ..... . For the past year, the minimum required rate of return was: Ο Ο 68.00% Ο 11.14% Ο 8.83% Ο 33.41%
Selected data from Chering Division's accounting records revealed the following: Sales Average investment Net operating income Minimum rate of return (divisional cost of capital) $272,640 $122,700 $ 19, 200 15% Chering Division's return on sales (ROS) is. Multiple Choice oooo
Consider the following data from two divisions of a company. P and Q. Divisional Sales Operating Income Investment $1,500,000 $ 1,700,000 $ 600,000 $ 680,000 $1,950,000 $ 2,210,000 if the minimum rate of return is 8%, what is Division P's residual income (RI? Multiple Choice $444,000. C) $756.000 o $1,344,000 1452
The data given below are from the accounting records of the Kuhn Corporation: Net Income (accrual basis) Depreciation Expense Decrease in Accounts Payable Decrease in Inventory Increase in Bonds Payable Sale of Common Stock for cash Increase in Accounts Receivable $55,000 $14,000 $ 3,000 $ 3,500 $15,000 $31,000 $ 5,500 Based on this information, the net cash provided by (used in) operating activities Multiple Choice $70,000 O $73.500 O $64.000 0 $79.000
Sales Variable expenses Contribution margin Fixed expenses Net operating income Divisional average operating assets $ 21,100,eee 13,350,48e 7,749,6ee 5,935,e00 $ 1,814,600 $ 4,220,00e The company had an overall return on investment (ROI) of 18.00 % this year (considering all divisions). Next year the Office Products Division has an opportunity to add a new product line that would require an additional investment that would increase average operating assets by $2,262,500. The cost and revenue characteristics of the new product line per...
Selected data from Division A of Green Company are as follows: Sales Average investment Operating income Minimum rate of return $430,000 $206,400 $ 51,600 11% Division A's asset turnover (AT) is (rounded to two decimal places): 1 0 0 0
The following data are for the Akron Division of Consolidated Rubber, Inc.: Sales Net operating income Average operating assets Stockholders' equity Residual income $940,000 $ 83,000 $ 440,000 $ 94,000 $ 34,000 For the past year, the minimum required rate of return was: Multiple Choice o 68.00% o 11.14% C ... ... ... ... ..... . For the past year, the minimum required rate of return was: Ο Ο 68.00% Ο 11.14% Ο 8.83% Ο 33.41%
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