ROI=Net operating income/Average operating assets
Net operating income=(75000*36%)=$27000
Residual income=Net operating income-(Average operating assets*Minimum required return)
27000-(0.19*75000)
=$12750.
36% Return on investment Average operating assets Minimum required rate of return $75,600 19% The residual...
Hep Save & Exit Sub Chavin Company had the following results during August: net operating income, $360,000; turnover, 3; and ROI 24%. Chavin Company's average operating assets were: Multiple Choice O $120,000 O $86,400 O $1,080,000 The following data has been provided for a company's most recent year of operations: Return on investment Average operating assets Minimum required rate of return 24% $70,000 19% The residual income for the year was closest to: Multiple Choice 0 $3,500 C O )...
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%
Pina, Inc. reports the following financial information. Average operating assets $2,948,200 Controllable margin $648,604 Minimum rate of return Compute the return on investment and the residual income. Return on investment Residual income
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...
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...
Killian Corp. has a residual income of $39,000 on invested assets of $453,000. If the hurdle rate is 10%, what is the operating income? Multiple Choice ο ο 53,900 ο $45.300 Ο 539,000 Return on investment can be calculated as: Multiple Choice o average invested assets/sales revenue. average 0 operating income/average invested assets. 0 operating income/sales revenue. 0 sales revenue/average invested assets.
Margin, Turnover, Return on Investment, Average Operating AssetsElway Company provided the following income statement for the last year:Sales$1,040,000,000Less: Variable expenses700,250,000Contribution margin$ 339,750,000Less: Fixed expenses183,750,000Operating income$ 156,000,000At the beginning of last year, Elway had $28,300,000 in operating assets. At the end of the year, Elway had $23,700,000 in operating assets.Required:1. Compute average operating assets.$fill in the blank 12. Compute the margin (as a percent) and turnover ratios for last year.Marginfill in the blank 2 %Turnoverfill in the blank 33. Compute ROI as...
Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the following income statement for the last year: Sales $893,070,000 Less: Variable expenses 546,442,000 Contribution margin $346,628,000 Less: Fixed expenses 198,614,000 Operating income $148,014,000 At the beginning of last year, Elway had $38,632,000 in operating assets. At the end of the year, Elway had 541,363,000 in operating assets. Required: 1. Compute average operating assets. 2. Compute the margin (as a percent) and turnover ratios for last year. If required,...
Agustin Industries is a division of a major corporation. Data concerning the most recent year appears below. Sales Net operating income Average operating assets $17,000,000 $ 1,581,000 $5,000,000 The division's return on investment (ROI) is closest to: Multiple Choice O 31.62% O 72% C The following data are for the Akron Division of Consolidated Rubber, Inc.: Sales Net operating income Average operating assets Stockholders' equity Residual income $750,000 $ 45,000 $ 250,000 $ 75,000 $ 15,000 For the past year,...
Return on Investment for Multiple Investments, Residual Income The manager of a division that produces add-on products for the automobile industry has just been presented the opportunity to invest in two independent projects. The first is an air cond tioner for the back seats of vans and minivans. The second is a turbocharger. Without the investments, the division will have average assets for the coming year of $29.9 million and expected operating income of $4.335 million. The outlay required for...