The following information is available for the Adam Company: Sales &
The following information is available for the Adam Company:
Sales $1,000,000
Invested capital 250,000
ROI 20%
The net income is _____.
Group of answer choices
a) $62,500
b) $750,000
c) $200,000
d) $50,000
Homework Answers
net income = invested capital * ROI
net income = $250,000 * 20%
net income = $50,000
hence, the correct answer is d) $50,000
Add Answer to:
The following information is available for the Adam Company:
Sales &
Coolbrook Company has the following information available for the past year: River Division Stream Division Sales...
Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $ 1,218,000 $ 1,803,000 Cost of goods sold and operating expenses 887,000 1,297,000 Net operating income $ 331,000 $ 506,000 Average invested assets $ 1,030,000 $ 1,510,000 The company’s hurdle rate is 7.76 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. River Division Stream Division ROI % % Residual Income (Loss) 2. Recalculate...
Coolbrook Company has the following information available for the past year: River Division Stream Division Sales...
Coolbrook Company has the following information available for
the past year:
River Division
Stream Division
Sales revenue
$
1,210,000
$
1,814,000
Cost of goods sold and operating expenses
886,000
1,283,000
Net operating income
$
324,000
$
531,000
Average invested assets
$
1,190,000
$
1,560,000
The company’s hurdle rate is 6.26 percent.
b. Operating income decreases by 8 percent. River Division Stream Division ROI Residual Income (Loss) c. The company invests $248,000 in each division, an amount that generates $108,000 additional...
Coolbrook Company has the following information available for the past year Sales revenue Cost of goods...
Coolbrook Company has the following information available for the past year Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets River Division $ 1,203,000 897,000 $ 306,200 $ 1,070,000 Stream Division $1,806,000 1,290,000 $ 516,000 $1,590,000 The company's hurdle rate is 6.26 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for the division for each independent situation that follows:...
Coolbrook Company has the following information available for the past year: River Division Stream Division Sales...
Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $ 1,206,000 $ 1,808,000 Cost of goods sold and operating expenses 898,000 1,297,000 Net operating income $ 308,000 $ 511,000 Average invested assets $ 1,150,000 $ 1,460,000 The company’s hurdle rate is 6.01 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for the division for each independent...
ABC Company has the following list of projects. The company has only $1,500,000 available for investment....
ABC Company has the following list of projects. The company has only $1,500,000 available for investment. Which projects should the company undertake? Why? Projects Initial Investment A) initial investment is 750,000, NPV 75,000 B )Initial investment 1,000,000 , NVP 250,000 C )initial investment 750,000 ,NVP 50,000 D )initial investment 500,000 NVP 90,000 E )initial investment 500,000 , NVP 100,000
The following information pertains to Bala Co, for last month's operations: Sales $600,000 Net operating income............
The following information pertains to Bala Co, for last month's operations: Sales $600,000 Net operating income......... 100,000 Average operating assets... 400,000 Which of the following equations should be used to compute Bala's return on investment? 0 A. (6/4) x (1/6) = ROI 0 B. (4/6) x (1/6) = ROI 0 C. (6/4) x (6/1) = ROI D. (4/6) < (6/1) = ROI QUESTION 7 Blackhawk Company's revenues are $800 on invested capital of $2000. Expenses are currently 40% of sales....
Coolbrook Company has the following information available for the past year: Sales revenue Cost of goods sold and opera...
Coolbrook Company has the following information available for the past year: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets River Division $ 1,219,000 894,000 $ 325,000 $ 1,080,000 Stream Division $ 1,812,000 1,285,000 $ 527,000 $ 1,430,000 The company's hurdle rate is 6.76 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e.,...
The following information is available for the Northern Company: Sales for year $6,750,000 Average invested $2,250,000...
The following information is available for the Northern Company: Sales for year $6,750,000 Average invested $2,250,000 capital for year Return on investment 15% What is the Asset Turnover Ratio?, A. 0.15 B. 3.00 C. 1.60 D.2.22
Coolbrook Company has the following information available for the past year: River Division $1,219,000 890,000 Stream...
Coolbrook Company has the following information available for the past year: River Division $1,219,000 890,000 Stream Division Sales revenue Cost of goods sold and operating expenses $ 1,816,000 1, 300, еее $ Net operating income $ 329,000 516,000 Average invested assets $ 1,170,000 $ 1,530,000 The company's hurdle rate is 7.76 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for the division for each independent...
6. value: 10.00 points Coolbrook Company has the following information available for the past year: ...
6.
value:
10.00 points
Coolbrook Company has the following information available for
the past year:
River
Division
Stream Division
Sales revenue
$
1,208,000
$
1,806,000
Cost of goods sold
and operating expenses
883,000
1,287,000
Net operating
income
$
325,000
$
519,000
Average invested
assets
$
1,160,000
$
1,530,000
The company’s hurdle rate is
6.01 percent.
Required:
1.
Calculate return on investment (ROI) and residual income for
each division for last...
Coolbrook Company has the following information available for
the past year:
River Division
Stream Division
Sales revenue
$
1,210,000
$
1,814,000
Cost of goods sold and operating expenses
886,000
1,283,000
Net operating income
$
324,000
$
531,000
Average invested assets
$
1,190,000
$
1,560,000
The company’s hurdle rate is 6.26 percent.
b. Operating income decreases by 8 percent. River Division Stream Division ROI Residual Income (Loss) c. The company invests $248,000 in each division, an amount that generates $108,000 additional...
Coolbrook Company has the following information available for the past year Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets River Division $ 1,203,000 897,000 $ 306,200 $ 1,070,000 Stream Division $1,806,000 1,290,000 $ 516,000 $1,590,000 The company's hurdle rate is 6.26 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for the division for each independent situation that follows:...
The following information pertains to Bala Co, for last month's operations: Sales $600,000 Net operating income......... 100,000 Average operating assets... 400,000 Which of the following equations should be used to compute Bala's return on investment? 0 A. (6/4) x (1/6) = ROI 0 B. (4/6) x (1/6) = ROI 0 C. (6/4) x (6/1) = ROI D. (4/6) < (6/1) = ROI QUESTION 7 Blackhawk Company's revenues are $800 on invested capital of $2000. Expenses are currently 40% of sales....
Coolbrook Company has the following information available for the past year: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets River Division $ 1,219,000 894,000 $ 325,000 $ 1,080,000 Stream Division $ 1,812,000 1,285,000 $ 527,000 $ 1,430,000 The company's hurdle rate is 6.76 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e.,...
The following information is available for the Northern Company: Sales for year $6,750,000 Average invested $2,250,000 capital for year Return on investment 15% What is the Asset Turnover Ratio?, A. 0.15 B. 3.00 C. 1.60 D.2.22
Coolbrook Company has the following information available for the past year: River Division $1,219,000 890,000 Stream Division Sales revenue Cost of goods sold and operating expenses $ 1,816,000 1, 300, еее $ Net operating income $ 329,000 516,000 Average invested assets $ 1,170,000 $ 1,530,000 The company's hurdle rate is 7.76 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for the division for each independent...
6.
value:
10.00 points
Coolbrook Company has the following information available for
the past year:
River
Division
Stream Division
Sales revenue
$
1,208,000
$
1,806,000
Cost of goods sold
and operating expenses
883,000
1,287,000
Net operating
income
$
325,000
$
519,000
Average invested
assets
$
1,160,000
$
1,530,000
The company’s hurdle rate is
6.01 percent.
Required:
1.
Calculate return on investment (ROI) and residual income for
each division for last...
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