Sales Net operating income Average operating assets $17,958,000 51,005,200 5 4,898,000 The division's return on investment (RO) is closest to
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A: ROI (Return on investment) shows the income earn by the company over the investment made in the form…
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A: Margin = Net Operating Income / Sales Turnover = Sales / Average Operating Assets Return on…
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A: Division Alpha: Given Asset turnover = 5 = Sales/average opertaing assets = 5 = Sales/$800,000 = 5…
Q: Division Alpha Bravo Charlie Sales $ 363,000 Net operating income %24 43,560 24 78,375 Average…
A: Ratio analysis helps to analyze the financial statements of the company. The management can take…
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A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
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Q: Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the…
A: Ratio analysis helps to analyze the financial statements of the company. The management can take…
Q: Division A $ 5,000,000 $ 1,000, 000 $ Division B $ 9,000, 000 $ 4, 500, 000 729, 000 Division C $…
A: ROI= Net income/Operating assets Residual income= Net income - (Operating assets x Required return)
Q: a. Determine the missing items. Round rate of return on investment, profit margin, and investment…
A: Formulas for the above table:
Q: Operating Income Invested Assets Retail Division $9,600,000 $40,000,000 Commercial Division…
A: Solution a: Return on Investment = Operating income / invested assets Retail division =…
Q: Return on investment The income from operations and the amount of invested assets in each division…
A: The Return on investment is calculated as operating income divided by investing assets.
Q: A company's shipping division (an investment center) has sales of $2,460,000, net income of…
A: Profit margin = Net income / Net sales Investment Turnover = Net sales / Average invested assets
Q: Use the following information to answer the questions. Company X $ 12,480,000 $ 3,120,000 2$ Company…
A: Return on Investment = Net Operating IncomeAverage Operating Assets Residual Income = Net…
Q: Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 5.01…
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Q: The following are selected data for the division for the consumer products of ABC Corp for 201'…
A: Sales = 50,000,000 Net profit = 2,000,000
Q: Assume the Residential Division of Kappy Faucets had the following results last year: Net sales…
A: Profit margin ratio: It is a profitability ratio calculated by the firm dividing operating income…
Q: Sales $ 12,000,000 $ 14,000,000 $ 25,000,000 Average operating assets $ 3,000,000 $…
A: Investment: It is an asset or item which is purchased and held to generate income or for…
Q: The sales, income from operations, and invested assets for each division of Grosbeak Company are as…
A: SOLUTION- RATIO ANALYSIS- IT IS A QUANTITATIVE METHOD OF GAINING INSIGHT IN TO COMPANYS…
Q: North South East West Sales $100,000 $25,000 $75,000 $76,000 CGS $50,000 $5,000 $50,674…
A: Solution: Operating profit is also known as recurring profit or earning before interest and tax. It…
Q: Given the following data: Average operating assets $1,152,000 Total liabilities 65,280 $ 384,000 $…
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Q: Margin, Turnover, Return on Investment, Average OperatingAssetsElway Company provided the following…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y…
A: Operating income of division X = $ 162,200 Investment in division X = 379,700
Q: Required: 1. Compute average operating assets. $ 2. Compute the margin (as a percent) and…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Fixed assets= 5,00,000 Current assets (other than debtors) 3,00,000 Debtors =2,00,000 Annual fixed…
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Q: Supply the missing data in the following table :…
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Q: Sales Net operating income Average operating assets Margin mover turn on investment (ROI) Alpha 5…
A: Margin = Net operating income / Sales Turnover = Sales / Average operating asset Return on…
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A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
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A: Formula to compute the return on investment.
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A: Solution: Business division Consumer division Sales 42800000 56000000 Cost of goods sold…
Q: Dacker Products is a division of a major corporation. The following data are for the most recent…
A: The Margin is calculated as net operating income divided by sales.
Q: River Stream Division Division Sales revenue $1,215,000 897,000 $1,818,000 1,287,000 $ 531,000…
A: 1. Calculate ROI and residual income for each division:
Q: Investment center analysis; ROI and residual income Romano Corporation has three operating divisions…
A: Return on Investment(ROI):-It helps in measuring the profit which company is earning from the…
Q: Return on investment The operating income and the amount of invested assets in each division of…
A: Return on Investment = Operating Income/Invested Assets Higher the ROI more the Profitable a…
Q: Given the following data: Average operating assets Total liabilities $728, 000 $ 51,840 $432,000…
A: Return on investment = Net operating income / Average operating assets where, Average operating…
Q: Division Alpha Bravo Charlie Sales $ 242,000 Net operating income $ 24,200 $ 38,745 Average…
A: we know that, turn over ratio = Sales / Average operating assets net operating income = Sales *…
Q: Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z…
A: The question is related to Profitability Ratio based on sales. The return on Sales is calculated…
Q: Eacher Wares is a diviSion of a major corpora Dilowing data are for the latest year of operations:…
A: "Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Assume that a division of MN Company has a 10% return on sales, income of $10,000, and an investment…
A: Formulas: Return on sales = Net income / Sales Investment turnover = Sales / Investment
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- Question 7 --/1 View Policies Current Attempt in Progress The Fulmar Division of Sunland Company had an ROI of 25% when sales were $2400000 and controllable margin was $480000. What were the average operating assets? O $9600 O $600000 O $120000 O $1920000Division Northeast Southeast West Sales $ ? $10,980,000 $ ? Net operating income $ ? $878,400 $432,000 Average operating assets $1,000,000 $ ? $ ? Margin 5.00% 7.20% Turnover 4 ? Return on investment (ROI) 14.40% 14.40%Assume the Residential Division of Kopper Faucets had the following results last year: Net sales revenue Operating income Average total assets Management's target rate of return What is the division's ROI? OA. 48% OB. 15% O C. 320% OD. 208% $ 16,000,000 2,400,000 5,000,000 15% ***
- 1. Chapter 11: Applying Excel Data $ 72,000,000 $ 3,600,000 $ 18,000,000 24% 4 Sales Net operating income 6. Average operating assets 7 Minumum required rate of return If your formulas are correct, you should get the correct answers to the following questions. a. What is the ROI? ROI % b. What is the residual income? (Nagative amount should be indicated by a minus sign.) Residual income c. Why is the residual income negative? 2. 5.Case 1: ROI You are comparing the performance of two (2) separate divisions, segments A and B, using ROI Analysis. A в P100,000.00 P500,000.00 30,000.00 Sales Operating Expenses 300,000.00 Net Operating income 70,000.00 200,000.00 Average Operating Assets 10,000.00 40,000.00 Required: Using ROI Analysis, which segment is performing better? To answer this question, you need to: 1. Compute the ROi of each segment and 2. Compute the components of ROI of each segmentUse the following information to answer the questions. Company X $ 12,480,000 $ 3,120,000 $ Company Y $ 28,480,000 $ 7,120,000 512,640 8.50% Company Z $ 20,480,000 $ 5,120,000 532,480 10.40% Sales Average operating assets Net operating income Minimum required rate of return 561,600 8.00% Required: 1. Compute the return on investment (ROI) for each company using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each company. 3. Each company is presented with an investment opportunity that would yield a 9% rate of return. a. Assume performance is measured based on ROI. Indicate whether each company will likely accept or reject the investment opportunity. b. Assume performance is measured based on residual income. Indicate whether each company will likely accept or reject the investment opportunity. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Reg ЗA Req 3B Compute the return on investment (ROI) for each company…
- Question 10.2 Provide the missing data for the following situations: Red Division White Division Green Division Sales A $10,000,000 E Net operating income $240,000 $500,000 $288,000 Total assets B C $1,600,000 Return on investment 0.16 0.10 F Return on sales 0.05 D 0.14Q7 Consider the following data from two divisions of a company, P and Q: Divisional P Q Sales $ 1,500,000 $ 1,000,000 Operating Income $ 600,000 $ 450,000 Investment $ 4,000,000 $ 2,750,000 If both divisions were presented with an opportunity to invest in a project that is estimated to achieve an ROI of 15%, what will the units likely decide? Multiple Choice Division P will not invest; Division Q will invest. Division P will invest; Division Q will not invest. Neither unit will invest in the projects. Division P will be indifferent; Division Q will not invest. Division P will invest; Division Q will be indifferent.Q35 Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z Sales $ 1,483,000 $ 805,000 $ 5,005,000 Operating Income 216,100 59,700 263,800 Investment in assets 625,600 292,500 3,179,600 The return on sales (ROS) for Division Z is: (Round your percentages to one decimal place.) Multiple Choice 7.4%. 8.3%. 5.3%. 14.6%. 20.4%.
- For its three investment centers, Monty Company accumulates the following data. 11 $1,960,000 $3,920,000 Controllable margin 1,470,000 2,116,800 Average operating assets 4,900,000 7,840.000 Sales Compute the return on investment (ROI) for each center. Return on investment Madla % ||| $3,920,000 3,724,000 9,800,000 % 111Refer to the following information. What are the sales for Division B? Sales Net operating income Average operating assets Return on investment Margin Turnover Target ROI $208,333 O $120,000 $18,000 O $1,250,000 $1,200,000 Division A Division B ? ? $48,000 $420,000 ? 0.2 2.1 17% $18,000 ? ? 15% 0.015 14% Division C $1,345,000 $82,000 ? ? ? 20% 8%Q23 Selected data from Box Division's accounting records revealed the following: Sales $ 345,060 Average investment $ 200,100 Net operating income $ 24,300 Minimum rate of return (divisional cost of capital) 11% Box Division's return on sales (ROS) is: (Round your percentages to one decimal place.) Multiple Choice 11.1%. 4.1%. 7.0%. 19.2%. 12.1%.