For the period just ended, Trek Corporation's Trailer Division reported profit of $54 million and invested capital of $450 million. Assuming an imputed interest rate of 10 per cent, calculate Trailer’s return on investment (ROI) and residual income. Explain what each calculation of ROI and RI means for Trek
Q: ou are evaluating the performance of Department X of Banawe Corporation for the year 2006. You are…
A: Return on Investment is a ratio which is used by companies to measure financial performance. In…
Q: The income statement for Forklift Electrical Ltd for two years is attached as a pic. Required:…
A: Solution 1: Net income - Current year = $11,812 - $10,125 = $1,687 Residual income - Current year =…
Q: Macon Mills is a division of Bolin Products, Inc. During the most recent year, Macon had a net…
A: Invested capital is calculated as assets minus non-interest-bearing current liabilities, it can also…
Q: During the current year, Sokowski Manufacturing earned income of $446,500 from total sales of…
A: Please find the answer to the above question below:
Q: Macon Mills is a division of Bolin Products, Inc. During the most recent year, Macon had a net…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: During the current year, Sokowski Manufacturing earned income of $786,500 from total sales of…
A: Please find the answer to the above question below:
Q: For its most recent fiscal year, a firm reported that its contribution margin was equal to 40…
A: The question is based on the concept of Cost Accounting.
Q: Macon Mills is a division of Bolin Products, Inc. During the most recent year, Macon had a net…
A: Income before tax = Net income / (1 - tax rate) = $36000000/(1-0.40) = $60,000,000 Operating profit…
Q: Calculate the target rate of return. (Round your answer to two decimal places.)
A: Target Rate of Return = Minimum Acceptable Operating income/Average Total Assets.
Q: The following tables contain financial statements for Dynastatics Corporation. Although the company…
A: Net fixed assets grow by $200, which is 25% of the current value of $800. Therefore, for the…
Q: Mason Corporation had $1,046,000 in invested assets, sales of $1,280,000, operating income amounting…
A: Residual income of the business means, income over and above its, minimum desired rate of return.
Q: Macon Mills is a division of Bolin Products, Inc. During the most recent year, Macon had a net…
A: ROI = Operating Income (1- Tax) / Invested Capital × 100 Invested Capital = Current Operating…
Q: watson is a division of Bolin Products, Inc. During the most recent year, Watson had a net income of…
A: The funds invested in the firm by its owners, debt holders, and lenders during the course of its…
Q: The following tables contain financial statements for Dynastatics Corporation. Although the company…
A: Debt ratio: It is the solvency ratio that shows the ability of the company to pay off its…
Q: The S&H construction company expects to have total sales next year totaling $14,500,00 In addition,…
A: Given information, Total Sales =$14,500,000 Interest expenses =$318,000 Cost of goods sold =58% of…
Q: The following tables contain financial statements for Dynastatics Corporation. Although the company…
A: Increase in net fixed assets every year=$2,40,000 for the next five years Thus total increase is 25%…
Q: During the current year, Sokowski Manufacturing earned income of $327,600 from total sales of…
A: Note: Since you have written Question B, I solved only Question B which is in the next step. Return…
Q: The following tables contain financial statements for Dynastatics Corporation. Although the company…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Compute the rate of ROA for 2008 and disaggregate ROA into profit margin for ROA and asset turnover…
A: Calculate profit margin: Profit margin = Income + Interest expense ( 1- Tax) + Minority interest /…
Q: Bustamante Company has income from operations of $64,800, invested assets of $540,000, and sales of…
A:
Q: The statement of comprehensive income of Blanche Company for the current year is presented below…
A: Degree of operating leverage in the business shows how much operating income or income before taxes…
Q: The following tables contain financial statements for Dynastatics Corporation. Although the company…
A: Assets= net working capital+fixed assets Liabilities=debt+equity
Q: Melb Corporation reported the following data for its most recent year: sales, $570,000; variable…
A: Contribution margin = Sales-Variable expense Contribution margin = $570,000-$270,000 Contribution…
Q: Barrera Corporation provides the following financial information: Minimum acceptable operating…
A: given that, Minimum acceptable operating income = $556600 Average total assets = $2000000 Operating…
Q: Macon Mills is a division of Bolin Products, Inc. During the most recent year, Macon had a net…
A: Given, Net Income = $36 million Interest Expense = $2,300,000 Tax Rate = 40%
Q: Vargas Corporation had $220,000 in invested assets, sales of $242,000, income from operations…
A: Rate of return on investment = income from operations / Average invested assets where, Average…
Q: Foreman Publishing Company’s income for the most recent quarter was $500,000, and the averagenet…
A: Residual income is nothing but the excess income in a particular department over the opportunity…
Q: Macon Mills is a division of Bolin Products, Inc. During the most recent year, Macon had a net…
A: Solution: Concept introduction: Return on investment (ROI) Return on investment is a profitability…
Q: Bouvous Corporation had the following information for 2015: Revenue $400,000 Operating expenses…
A: Net income=Revenue-Operating expenses=$400,000 - $350,000=$50,000
Q: Orono Corp.'s sales last year were $575,000, its operating costs were $362,500, and its interest…
A: As per formula Times interest earned (TIE) ratio = (Sales-Operating cost)/Interest expenses Where…
Q: Chamberlain & Co. has income from operations of $232,800, invested assets of $970,000, and sales of…
A: profit margin= profit /sales = 232800/3880000*100 = 6% investment turnover = Sales/ invested…
Q: BR Company has a contribution margin of 16%. Sales are $446,000, net operating income is $71,360,…
A: Return On Investment: This ratio is one of the most important ratios for calculating overall…
Q: Bottlebrush Company has operating income of $150,720, invested assets of $314,000, and sales of…
A: The answer is as fallows
Q: Mason Corporation had $1,027,000 in invested assets, sales of $1,215,000, operating income amounting…
A: Investment turnover: The investment turnover ratio compares the revenues produced by a business to…
Q: The following information relates to last year's operations at the Legumes Division of Gervani…
A: Given that, Minimum required rate of return = 14% Return on investment = 16.5% Sales = $970000…
Q: During the current year, Sokowski Manufacturing earned income of $206,500 from total sales of…
A: Asset turnover = Sales / Average capital assets ROI = Margin * Turnover
Q: The following tables contain financial statements for Dynastatics Corporation. Although the company…
A: Financial Statements:- These are statements prepared by the company in order to know its financial…
Q: Red Company has a profit margin of 15 percent on sales of $20,000,000. If the firm has a debt of…
A: Solution:- The return on Total Assets ratio measures how much net income the company earns on its…
Q: Gibson Corporation’s balance sheet indicates that the company has $580,000 invested in operating…
A: Note: As per our guidelines, we will solve the first three subparts for you. 1. Sales =…
Q: Macon Mills is a division of Bolin Products, Inc. During the most recent year, Macon had a net…
A: Income before tax = Net income / (1 - tax rate) = $38,000,000 / (1 - 0.40) = $63333333 Add: Interest…
Q: requires a minimum return on its investments of 15%, what is their residual income? NUBD Co has the…
A:
Q: GenoPearls Company, a division of PUSHING THE LIMITS Corporation, has sales of P12,000,000 and…
A: Calculation of net income : Particulars Amount Sales P12,000,000 Less : Variable cost and…
Q: For a recent year L’Oréal reported operating profit of €3,385 (in millions) for its cosmetics…
A: Return on investment: It can be defined as a financial ratio that is used to measure the efficiency…
Q: Flamengo Co is a sporting goods manufacturing. It had an operating income of $57,000, sales of…
A: Margin on Sales = Operating Income / Sales ROI = Margin on Sales * Asset Turnover Ratio
Q: A. Based on this information, calculate asset turnover. If required, round your answer to two…
A: Asset Turnover Ratio = Net Sales/Average capital assets*100
Q: Briggs Company has operating income of $108,955, invested assets of $283,000, and sales of $990,500.…
A: Return on Investment- It refers to the percentage of profit earned by investing money in a business…
For the period just ended, Trek Corporation's Trailer Division reported profit of $54 million and invested capital of $450 million. Assuming an imputed interest rate of 10 per cent, calculate Trailer’s
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Violet Company has sales of $469,000, net operating income of $241,000, average invested assets of $805,000, and a hurdle rate of 11.75 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.)Bustamante Company has income from operations of $24,480, invested assets of $85,000, and sales of $204,000. Use the DuPont formula to compute the return on investment and show (a) the profit margin, (b) the investment turnover, and (c) the return on investment. If required, round your answers to two decimal places. a. Profit margin fill in the blank 1% b. Investment turnover fill in the blank 2 c. Return on investment fill in the blank 3%Violet Company has sales of $463,000, net operating income of $248,000, average invested assets of $794,000, and a hurdle rate of 8.50 percent. Calculate Violet's return on investment and its residual income. Note: 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) 31.23%
- Bottlebrush Company has income from operations of $66,410, invested assets of $229,000, and sales of $664,100. Use the DuPont formula to calculate the return on investment, and show (a) the profit margin, (b) the investment turnover, and (c) the return on investment. Round answers to one decimal place. a. Profit Margin fill in the blank 1 % b. Investment Turnover fill in the blank 2 c. Return on Investment fill in the blank 3 %Ralston Company has operating income of $75,000, invested assets of $360,000, and sales of $790,000. Use the DuPont formula to compute the return on investment (ROI), and show (a) the profit margin, (b) the investment turnover, and (c) the return on investment. Round the profit margin percentage to two decimal places, the investment turnover to three decimal places, and the return on investment to two decimal places.Bottlebrush Company has operating income of $59,385, invested assets of $321,000, and sales of $1,187,700. Use the DuPont formula to compute the return on investment, and show (a) the profit margin, (b) the investment turnover, and (c) the return on investment. Round answers to one decimal place. a. Profit margin fill in the blank 1 % b. Investment turnover fill in the blank 2 c. Return on investment fill in the blank 3 %
- Bottlebrush Company has operating income of $150,720, invested assets of $314,000, and sales of $1,004,800. Use the DuPont formula to compute the return on investment, and show (a) the profit margin, (b) the investment turnover, and (c) the return on investment. Round answers to one decimal place.During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000,000. A. Based on this information, calculate asset turnover. B. Using the sales margin from the previous exercise, what is the total ROI for the company during the current year?The income statement comparison for Rush Delivery Company shows the income statement for the current and prior year. A. Determine the operating income (loss) (dollars) for each year. B. Determine the operating income (percentage) for each year. C. The company made a strategic decision to invest in additional assets in the current year. These amounts are provided. Using the total assets amounts as the investment base, calculate the ROI. Was the decision to invest additional assets in the company successful? Explain. D. Assuming an 8% cost of capital, calculate the RI for each year. Explain how this compares to your findings in part C.
- 14. Briggs Company has operating income of $33,516, invested assets of $133,000, and sales of $478,800. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin ____ % b. Investment turnover ____ c. Return on investment ____ %Required: 1. Compute the company's average operating assets for last year. 2. Compute the company’s margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company’s residual income last year?Franklin Corporation's balance sheet indicates that the company has $570,000 invested in operating assets. During Year 2, Franklin earned operating income of $64,980 on $1,140,000 of sales. Required a. Compute Franklin's profit margin for Year 2. b. Compute Franklin's turnover for Year 2. c. Compute Franklin's return on investment for Year 2. d. Recompute Franklin's ROI under each of the following independent assumptions: (1) Sales increase from $1,140,000 to $1,368,000, thereby resulting in an increase in operating income from $64,980 to $82,080. (2) Sales remain constant, but Franklin reduces expenses, resulting in an increase in operating income from $64.980 to $67,260. (3) Franklin is able to reduce its invested capital from $570,000 to $456,000 without affecting operating income. Complete this question by entering your answers in the tabs below. Req A to C Req D Compute Franklin's profit margin, turnover and return on investment for Year 2. Note: Round "Profit margin" and "Return…