CDM Corporation has multiple segments. Segment 1 has sales of $3,000,000, net operating income of $80,000, and average operating assets of $1,000,000. The company's minimum required rate of return is 6%.
What is the Return on Investment (ROI) for the segment? %
What is the residual income of the segment? $
The segment reduces its average operating assets to $800,000, which lowers its net operating income to $64,000.
What is the new Return on Investment (ROI) for the segment? %
What is the new residual income for the segment? $
CDM Corporation has multiple segments. Segment 1 has sales of $3,000,000, net operating income of $80,000,...
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5 Data 6 Sales $25,000,000 7 Net operating income $3,000,000 8 Average operating assets $10,000,000 9 Minimum required rate of return 25% 10 11 Enter a formula into each of the cells marked with a ? below 12 Review Problem: Return on Investment (ROI) and Residual Income 13 14 Compute the ROI 15 Margin 16 Turnover 17 ROI 18 19 Compute the residual income 20 Average operating assets 21 Net operating income 22 Minimum required return...
Violet Company has sales of $454,000, net operating income of $255,000, average invested assets of $800,000, and a hurdle rate of 8.25 percent. Calculate Violet's return on investment and its residual income. (Enter your ROI answer as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%). Round your Residual Income (Loss) answer to the nearest whole dollar.) % Return on Investment (ROI) Residual Income (Loss)
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 )...
Violet Company has sales of $456,000, net operating income of $245,000, average invested assets of $801,000, and a hurdle rate of 11.50 percent Calculate Violet's return on investment and its residual income. (Enter your ROI answer as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%). Round your Residual Income (Loss) answer to the nearest whole dollar.) Return on Investment (ROI) Rewidual Income (Loss)
Given the following data: Average operating assets Total liabilities Sales Contribution margin Net operating income $512,000 $ 46,080 $384,000 $215,040 $ 46,080 Return on investment (ROI) is: o 12.0% o 9.0% o 56.0% BR Company has a contribution margin of 11%. Sales are $530,000, net operating Income is $58,300, and average operating assets are $137.000. What is the company's return on investment (ROI? Multiple Choice Ο Ο Ο Last year a company had sales of $370,000, a turnover of 2.6,...
Violet Company has sales of $463,000, net operating income of $250,000, average invested assets of $801,000, and a hurdle rate of 11.25 percent. Calculate Violet’s return on investment and its residual income. (Enter your ROI answer as a percentage rounded to two decimal places. Round your Residual Income (Loss) answer to the nearest whole dollar.)
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%
Beta Inc has the following data for last years operations: Sales................................ $100,000 Net Operating Income........ $6,000 Average Operating Assets... $40,000 Stockholders Equity............... $25,000 Minimum Required rate of return. 10% a) Compute Residual Income b) Compute return of investment Alpha Corp reported operating data as follows for the past year: Sales..................$600,000 Net Operating Income....$30,000 Average Operating Assets....$200,000 Stakeholders Equity.................. $50,000 Residual Income........................ $14,000 a) Calculate Alpha's Minimum Rate of Return b)Alpha's Margin c) Alpha's turnover
The Western Division of Claremont Company had net operating income of $142,000 and average invested assets of $551,000. Claremont has a required rate of return of 13.00 percent. Western has an opportunity to increase operating income by $51,000 with a $98,000 investment in assets. Compute Western Division's return on investment and residual income currently and if it undertakes the project. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%). Round...
Calculating ROI – Use the following information for The Regal Company to compute ROI. Net operating income ($50,000) Average operating assets ($230,000) Sales ($535,000) Operating expenses($485,000) Compute Regal's new ROI 1a. Assume that Regal's manager invests in a $30,000 piece of equipment that increases sales by $35,000, while increasing operating expenses by $15,000 and reports the following: Net operating income ($50,000) Average operating assets($230,000) Sales($535,000) Operating expenses ($485,000) Compute Regal’s new ROI. 1b. Computing Residual Income - The Retail Division...