Return on Investment=Net Income/Average Assets | ||||
(A) | (B) | (A)/(B) | ||
Net Income | Average Assets | Return on Investment | ||
Investment Center | ||||
Cameras and Camcorders | $ 63,84,000.00 | $ 2,66,00,000.00 | 24.0% | |
Phone and Communications | $ 44,32,500.00 | $ 1,97,00,000.00 | 22.5% | |
Computer and Accessories | $ 41,16,000.00 | $ 1,96,00,000.00 | 21.0% | |
On the basis of Return on Investment Cametas and Camcorders division perfomed the best. | ||||
Residual Income=Net Income-Target Income | ||||
Target Income=Average Assets* Target Return | ||||
Target Return=14% | ||||
Cameras and Camcorders | Phone and Communications | Computer and Accessories | ||
Average Assets=(A) | $ 2,39,00,000.00 | $ 2,09,00,000.00 | $ 1,88,00,000.00 | |
Target Return=(B) | 14% | 14% | 14% | |
Target Income=(A)*(B) | $ 33,46,000.00 | $ 29,26,000.00 | $ 26,32,000.00 | |
Residual Income | ||||
Cameras and Camcorders | Phone and Communications | Computer and Accessories | ||
Net Income=(A) | $ 69,00,000.00 | $ 29,26,000.00 | $ 9,00,000.00 | |
Target Income=(B) | $ 33,46,000.00 | $ 29,26,000.00 | $ 26,32,000.00 | |
Residual Income(Loss)=(A)-(B) | $ 35,54,000.00 | $ - | $ -17,32,000.00 | |
Saved Н. Compute return on investment for each of the divisions below (each is an investment...
Compute return on investment for each of these divisions (each is an investment center). Investment Center Net Income Return on Investment Cameras and camcorders Average Assets $ 20,600,000 14,500,000 18,400,000 4,120,000 2,682,500 2,852,000 Phones and communications Computers and accessories
Compute return on investment for each of these divisions (each is an Investment center) Investment Contet Net Income A verage Assets Relum on investment Cameras and camcorders Phones and communications Computers and accessories 5,712,000 3,870,000 1,870,000 27,200,000 21,500,000 1,000,000
Investment Center Cameras and camcorders Phones and communications Computers and accessories Net Income $5,100,000 2,758,000 1,000,000 Average Assets $ 26,000,000 19,700,000 18,400,000 Assume a target income of 14% of average invested assets. Required: Compute residual income for each division. (Enter losses with a minus sign.) Target Income Cameras and Camcorders Phones and Communications Computers and Accessories Targeted return Target income Residual Income Cameras and Camcorders Phones and Communications Computers and Accessories Residual income (loss)
Investment Center Cameras and camcorders Phones and communications Computers and accessories Net Income $5,950,000 2,301,000 1,050,000 Average Assets $ 29,600,000 17,700,000 18,600,000 Assume a target income of 13% of average invested assets. Required: Compute residual income for each division. (Enter losses with a minus sign.) Target Income Cameras and Camcorders Phones and Communications Computers and Accessories Targeted return Target income Residual income Cameras and Camcorders Phones and Communications Computers and Accessories Residual income (loss)
Investment Center Cameras and camcorders Phones and communications Computers and accessories Net Income $5,750,000 2,292,000 1,100,000 Average Assets $ 25,700,000 19,100,000 12,200,000 Assume a target income of 12% of average invested assets. Required: Compute residual income for each division. (Enter losses with a minus sign.) Target Income Cameras and Camcorders Phones and Communications Computers and Accessories Targeted return Target income Residual Income Cameras and Camcorders Phones and Communications Computers and Accessories Residual income (loss)
QS 9-11 Computing residual income LO A1 Investment Center Cameras and camcorders Phones and communications Computers and accessories Net Income $6,250,000 2,674,000 1,000,000 Average Assets $28,400,000 19,100,000 19,800,000 Assume a target income of 14% of average invested assets. Required: Compute residual income for each division (Enter losses with a minus sign.) Target Income Cameras and Camcorders Phones and Communications Computers and Accessories ces Targeted return Target income Residual Income Cameras and Camcorders Phones and Communications Computers and Accessories Residual income...
Investment Center Cameras and camcorders Phones and communications Computers and accessories Net Income $6,450,000 1,750,000 950,000 Average Assets $ 25,700,000 12,500,000 10,600,000 Assume a target income of 14% of average invested assets. Required: What is the residual income for each division? (Enter losses with a minus sign.) Target Income Cameras and Camcorders P hones and Communications Computers and Accessories Targeted return Target income Residual Income Cameras and Camcorders Phones and Communications Computers and Accessories Residual income (loss)
QS 22-11 Computing residual income Lo Al Investment Center Cameras and camcorders Phones and communications Computers and accessories Net Income $ 6,100,000 2,475,000 900,000 Average Assets $ 24,800,000 16,500,000 17,400,000 Assume a target income of 15% of average invested assets. Required: Compute residual income for each division. (Enter losses with a minus sign.) Target Income Cameras and Camcorders Phones and Communications Computers and Accessories $ Average assets Targeted return Target income 24,800,000 15% $ 16,500,000 15% $ 2,475,000 Phones and...
QS 22-10 Computing return on investment LO A1 Compute return on investment for each of these divisions (each is an Investment center). Answer is not complete. Investment Center Net Income Average Assets Return on Investment Cameras and camcorders Phones and communications Computers and accessories 5.712,000 3,870,000 27,200,000 21,500,000 1,870,000 11,000,000
TO Average Assets Investment Center Net Income Cameras and camcorders $4,900,e00 $24,500,000 54 Phones and 2,196,000 18, зее, еее ints communications Computers and accessories 15,20е, eee 1,000,eee eBook Hint Assume a target income of 12 % of average invested assets. Print Required: Compute residual income for each division. (Enter losses with a minus sign.) eferences Computers and Accessories Cameras and Camcorders Phones and Communications Target Income