1) Calculate following
Return on investment (284000/2600000) | 10.92% |
Investment turnover (900000/2600000) | 0.3462 |
Profit margin (284000/900000) | 31.56% |
Residual income (284000-312000) | -28000 |
2) Return on investment = 284000/3100000 = 9.16%
Residual income = 284000-372000 = -88000
E10-5 Calculating Return on Investment, Residual Income, Determining Effect of Changes in Sales, Expenses, Invested Ass...
PA10-1 Calculating Return on Investment, Residual Income, Determining Effect of Changes in Sales, Expenses, Invested Asset, Hurdle Rate on Each [LO 10-4, 10-5] 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 $ 1,200,000 896,000 $ 304,000 $ 1,130,000 Stream Division $ 1,818,000 1,282,000 $ 536,000 $1,580,000 The company's hurdle rate is 7.76 percent. Required: 1. Calculate return on investment (ROI)...
Solano Company has sales of $760,000, cost of goods sold of $500,000, other operating expenses of $40,000, average invested assets of $2,250,000, and a hurdle rate of 11 percent. Required: 1. Determine Solano's return on investment (ROI), investment turnover, profit margin, and residual income. (Do not round your intermediate calculations. Enter your ROI and Profit Margin percentage answer to the nearest 2 decimal places, (i.e., 0.1234 should be entered as 12.34%). Round your Investment Turnover answer to 4 decimal places.)...
PA10-1 Calculating Return on Investment, Residual Income, Determining Effect of Changes in Sales, Expenses, Invested Asset, Hurdle Rate on Each [LO 10-4, 10-5] Coolbrook Company has the following information available for the past year Stream Division $ 1,808, 1,287,000 River Division S 1,211,000 B87,000 Sales revenue Cost of goods sold and operating expenses 324,000 521,000 Net operating income $ 1,560,000 $ 1,150,000 Average invested assets The company's hurdle rate is 6.76 percent. Required: 1. Calculate retum on investment (ROI) and...
please answer 2B and 2C
Solano Company has sales of $740,000, cost of goods sold of $490,000, other operating expenses of $46,000, average invested assets of $2,200,000, and a hurdle rate of 10 percent. Required: 1. Determine Solano's return on investment (ROI), investment turnover, profit margin, and residual income. 2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario's impact on Solano's ROI and residual income. (Note: Treat each scenario independently) a. Company sales...
8
please show all work as necessary
this is for part A, B, C, D, and E for this question.
Solano Company has sales of $740,000, cost of goods sold of $490,000, other operating expenses of $46,000, average invested assets of $2,200,000, and a hurdle rate of 10 percent. Required: 1. Determine Solano's return on investment (ROI), investment turnover, profit margin, and residual income. 2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario's...
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Solano Company has sales of $740,000, cost of goods sold of $490,000, other operating expenses of $46,000, average invested assets of $2,200,000, and a hurdle rate of 10 percent. Required: 1. Determine Solano’s return on investment (ROI), investment turnover, profit margin, and residual income. 2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario’s impact on Solano’s ROI and residual income. (Note: Treat each scenario independently.) a. Company sales and cost of goods sold...
Solano Company has sales of $740,000, cost of goods sold of $490,000, other operating expenses of $46,000, average invested assets of $2,200,000, and a hurdle rate of 10 percent. Required: 1. Determine Solano’s return on investment (ROI), investment turnover, profit margin, and residual income. 2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario’s impact on Solano’s ROI and residual income. (Note: Treat each scenario independently.) a. Company sales and cost of goods sold...
Kaler Company has sales of $1,610,000, cost of goods sold of $835,000, other operating expenses of $248,000, average invested assets of $5,400,000, and a hurdle rate of 11 percent. Required: 1. Determine Kaler's return on investment (RON, investment turnover, profit margin, and residual income. 2. Several possible changes that Kaler could face in the upcoming vear follow. Determine each scenario's impact on Kalers Roland residual income. (Note: Treat each scenario independently.) a. Company sales and cost of goods sold increase...