Homework Answers
| (a) | Margin | = | Operating income | / | Sales revenue | ||
| = | $ 3,65,000 | / | $ 20,00,000 | ||||
| = | 18% | ||||||
| (b) | Asset turnover times | = | Sales | / | Average total assets | ||
| = | $ 20,00,000 | / | $ 27,20,000 | ||||
| = | 0.74 | times | |||||
| Working: | |||||||
| Beginning asset | $ 25,20,000 | ||||||
| Ending assets | $ 29,20,000 | ||||||
| Total assets | $ 54,40,000 | ||||||
| Average total assets | $ 27,20,000 | ||||||
| (c) | Return on investment | = | Operating income | / | Average total assets | ||
| = | $ 3,65,000 | / | $ 27,20,000 | ||||
| = | 13.42% | ||||||
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Bramble Design Works generated $365,000 in operating income on sales revenue of $2,000,000. The company had...
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Bramble, Inc., reported the following results for last year. Net operating income Sales revenue Average operating assets Liles Division Marston Division Outland Division $116,000 $54,700 $337,000 600,000 150,000 1,200,000 1,042,000 300,000 1,520,000 (a) Calculate margin for each division. (Round answers to 1 decimal place, e.g. 5.1%) Margin Liles % Marston Outland Which division generates the highest margin? (b) Calculate ROI for each division. (Round answers to 1 decimal place, e.g. 5.1%) Return on Investment Liles Marston Outland If the divisions...
* Problem 9-07A a Bramble Corporation and Ayayai Corporation, two companies of roughly the same size, are both involved...
* Problem 9-07A a Bramble Corporation and Ayayai Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe-tracing devices. Each company depreciates its plant assets using the straight-line approach. An investigation of their financial statements reveals the information shown below. Net income Sales revenue Total assets (average) Plant assets (average) Intangible assets (goodwill) Bramble Corp. $ 226,980 1,891,500 3,783,000 2,560,000 436,100 Ayayai Corp. $ 318,600 2,124,000 3,540,000 1,819,000 (a) For each company, calculate these...
Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $357,000 136,000...
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Exercise 14-11 The following selected information is for Macaron Corporation: Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $353,000 134,500 501,000 365,000 33,400 2017 $281,000 100,000 402,000 287,000 29,700 2016 $272,000 51,500 302,000 185,000 20,300 Macaron had no preferred shares. x Your answer is incorrect. Try again. Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return on common shareholders' equity ratios for 2018 and 2017. 2.6. Round asset turnover...
The Dahlia Company has net income of $155,850. There are currently 27.85 days' sales in receivables....
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Brief Exercise 222 Selected data from the Florida Fruit Company are presented below: Total assets Average...
Brief Exercise 222 Selected data from the Florida Fruit Company are presented below: Total assets Average total assets Net income Net sales Average common stockholders' equity Net cash provided by operating activities $1,500,000 1,850,000 175,000 1,300,000 1,000,000 275,000 Assuming that no dividends were declared or paid during the period. Calculate the profit margin. (Round answer to 1 decimal place, e.g. 15.2%.) Profit margin Compute asset turnover. (Round answer to 2 decimal places, e.g. 0.25.) times Asset turnover Compute return on...
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The Marine Division of Pacific Corp. has average invested assets of $120,000,000. Sales revenue of $50,300,000 results in an operating income of $9,960,000. The hurdle rate is 7% a. Calculate the return on investment. (Round your answer to 2 decimal places.) Return on Investment b. Calculate the profit margin. (Round your answer to 2 decimal places.) Profit Margin c. Calculate the investment turnover (Round your answer to 4 decimal places.) Investment Turnover d. Calculate the residual income. Residual Income
The following CVP Income statements are available for Bramble Company and Vaughn Company. Sales Variable costs...
The following CVP Income statements are available for Bramble Company and Vaughn Company. Sales Variable costs Contribution margin Fixed costs Net income Bramble Company Vaughn Company $490,000 $490,000 294,000 245,000 196,000 245,000 176,400 225,400 $19,600 $19,600 (a1) Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Contribution Margin Ratio Bramble Company Vaughn Company e Textbook and Media Attempts: 0 of 15 used Save for Later Submit Answer
The following CVP income statements are available for Bramble Company and Vaughn Company. Bramble Company Vaughn...
The following CVP income statements are available for Bramble Company and Vaughn Company. Bramble Company Vaughn Company Sales $490,000 $490,000 Variable costs 294,000 245,000 Contribution margin 196,000 245,000 Fixed costs 176,400 225,400 Net income $19,600 $19,600 (a1) x Your answer is incorrect. Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Contribution Margin Ratio Bramble Company 40 Vaughn Company 50 eTextbook and Media
Calculating Average Operating Assets, Margin, Turnover, Return on investment (RON) Forchen, in provided the following information...
Calculating Average Operating Assets, Margin, Turnover, Return on investment (RON) Forchen, in provided the following information for two of its divisions for last year Small Appliances Cleaning Products Division Division $34,670,000 $31,320,000 Operating come 2.77600 Operating assets, Lanuary 1 6,394,000 5,600,000 Operating assets, December 31 7,474,000 6,000,000 Required: 1. For the Small Appliances Division, calculate a. Average operating a s s Mar c. Turnover d. Return on investment (RON) 2. For the Cleaning Products D ona te: Round your turnover...
Bramble, Inc., reported the following results for last year. Net operating income Sales revenue Average operating assets Liles Division Marston Division Outland Division $116,000 $54,700 $337,000 600,000 150,000 1,200,000 1,042,000 300,000 1,520,000 (a) Calculate margin for each division. (Round answers to 1 decimal place, e.g. 5.1%) Margin Liles % Marston Outland Which division generates the highest margin? (b) Calculate ROI for each division. (Round answers to 1 decimal place, e.g. 5.1%) Return on Investment Liles Marston Outland If the divisions...
* Problem 9-07A a Bramble Corporation and Ayayai Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe-tracing devices. Each company depreciates its plant assets using the straight-line approach. An investigation of their financial statements reveals the information shown below. Net income Sales revenue Total assets (average) Plant assets (average) Intangible assets (goodwill) Bramble Corp. $ 226,980 1,891,500 3,783,000 2,560,000 436,100 Ayayai Corp. $ 318,600 2,124,000 3,540,000 1,819,000 (a) For each company, calculate these...
Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $357,000 136,000 503,000 379,000 32,700 2017 $285,000 97,500 394,000 277,000 29,800 2016 $267,000 48,500 297,000 181,000 20,400 Macaron had no preferred shares. Your answer is partially correct. Try again. Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return an common shareholders' equity ratios for 2018 and 2017. (Round gross profit margin, profit margin, return on assets and return on equity to...
Exercise 14-11 The following selected information is for Macaron Corporation: Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $353,000 134,500 501,000 365,000 33,400 2017 $281,000 100,000 402,000 287,000 29,700 2016 $272,000 51,500 302,000 185,000 20,300 Macaron had no preferred shares. x Your answer is incorrect. Try again. Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return on common shareholders' equity ratios for 2018 and 2017. 2.6. Round asset turnover...
The Dahlia Company has net income of $155,850. There are currently 27.85 days' sales in receivables. Total assets are $844,000, total receivables are $146,900, and the debt-equity ratio is .45 What is the company's profit margin? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Profit margin What is the company's total asset turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Total...
Brief Exercise 222 Selected data from the Florida Fruit Company are presented below: Total assets Average total assets Net income Net sales Average common stockholders' equity Net cash provided by operating activities $1,500,000 1,850,000 175,000 1,300,000 1,000,000 275,000 Assuming that no dividends were declared or paid during the period. Calculate the profit margin. (Round answer to 1 decimal place, e.g. 15.2%.) Profit margin Compute asset turnover. (Round answer to 2 decimal places, e.g. 0.25.) times Asset turnover Compute return on...
The Marine Division of Pacific Corp. has average invested assets of $120,000,000. Sales revenue of $50,300,000 results in an operating income of $9,960,000. The hurdle rate is 7% a. Calculate the return on investment. (Round your answer to 2 decimal places.) Return on Investment b. Calculate the profit margin. (Round your answer to 2 decimal places.) Profit Margin c. Calculate the investment turnover (Round your answer to 4 decimal places.) Investment Turnover d. Calculate the residual income. Residual Income
The following CVP Income statements are available for Bramble Company and Vaughn Company. Sales Variable costs Contribution margin Fixed costs Net income Bramble Company Vaughn Company $490,000 $490,000 294,000 245,000 196,000 245,000 176,400 225,400 $19,600 $19,600 (a1) Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Contribution Margin Ratio Bramble Company Vaughn Company e Textbook and Media Attempts: 0 of 15 used Save for Later Submit Answer
The following CVP income statements are available for Bramble Company and Vaughn Company. Bramble Company Vaughn Company Sales $490,000 $490,000 Variable costs 294,000 245,000 Contribution margin 196,000 245,000 Fixed costs 176,400 225,400 Net income $19,600 $19,600 (a1) x Your answer is incorrect. Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Contribution Margin Ratio Bramble Company 40 Vaughn Company 50 eTextbook and Media
Calculating Average Operating Assets, Margin, Turnover, Return on investment (RON) Forchen, in provided the following information for two of its divisions for last year Small Appliances Cleaning Products Division Division $34,670,000 $31,320,000 Operating come 2.77600 Operating assets, Lanuary 1 6,394,000 5,600,000 Operating assets, December 31 7,474,000 6,000,000 Required: 1. For the Small Appliances Division, calculate a. Average operating a s s Mar c. Turnover d. Return on investment (RON) 2. For the Cleaning Products D ona te: Round your turnover...
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