What is the Residual Income for Stevenson Corporation, given the following info: Invested Assets = $550,000 Sales = $660,000 Income from Operations = $99,000 Desired minimum rate of return = 15.0% O$16,500 O $17,280 O $14,850
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- INCOME STATEMENT Hermann Industries is forecasting the following income statement:Sales $8,000,000Operating costs excluding depr. & amort. 4,400,000EBITDA $3,600,000Depreciation & amortization 800,000EBIT $2,800,000Interest 600,000EBT $2,200,000Taxes (40%) 880,000Net income $1,320,000The CEO would like to see higher sales and a forecasted net income of $2,500,000. Assumethat operating costs (excluding depreciation and amortization) are 55% of sales and thatdepreciation and amortization and interest expenses will increase by 10%. The tax rate, whichis 40%, will remain the same. What level of sales would generate $2,500,000 in net income?The following information is available on Company A: Sales Operating Income $900,000 $36,000 Shareholders' Equity Average Operating Assets $100,000 $180,000 Minimum Required Rate of Return 15% What is the fixed asset turnover for Company A? ○ 25 ○ 5 O 9 O2What is the Profit Margin for Stevenson Corporation, given the following info: Invested Assets = $550,000 Sales $660,000 = Income from Operations = $99,000 Desired minimum rate of return = 15.0% O 16.0% O 18.0% 15.0% 20.0%
- Use this information for Mason Corporation to answer the question that follow. Mason Corporation had $1,030,000 in invested assets, sales of $1,275,000, income from operations amounting to $227,000, and a desired minimum return of 12%. Round the percentage to one decimal place. The profit margin for Mason Corporation is Oa. 22.0% Оb. 17.8% Oc. 12.0% Od. 80.8%Use this information for Mason Corporation to answer the question that follow. Mason Corporation had $1,058,000 in invested assets, sales of $1,229,000, income from operations amounting to $202,000, and a desired minimum return of 12%. Round the percentage to one decimal place. The profit margin for Mason Corporation is Oa. 19.1% Ob. 16.4% Oc. 86.1% IC. Od. 12.0%Mason Corporation had $1,077,000 in invested assets, sales of $1,209,000, income from operations amounting to $238,000, and a desired minimum return of 12%. The residual income for Mason Corporation is a.$108,760 b.($5,300) c.$0 d.$152,264
- Calculate the sales margin, asset turnover, and ROA for the companies below: Average Capital Assets Company A B Net Income Sales 350,000 5,500,000 12,000,000 .06 845,000 9,350,000 13,500,000 Sales Margin 1 Asset Turnover 2.9 1.44 Note: Please write the sales Margin and ROI as a percentage or as a decimal rounded to two places behind the decimal point. ROI 6,500,000 4,150,000Mason Corporation had $1,096,000 in invested assets, sales of $1,237,000, income from operations amounting to $203,000, and a desired minimum rate of return of 15%. The residual income for Mason Corporation is a.$38,600 b.$54,040 c.$0 d.($5,300)Use the following information to answer the next question. Total Asset = $40 million Basic earning power (BEP) ratio is 20% Times-interest-earned (TIE) Principal payments = 4 million ratio is 6.55 $1.35 million; $0.37 million What is the company's EBIT? The company's interest expense? $3.33 million; $0.83 million $8.0 million; $0.62 million Depreciation = $1.0 million. $7.5 million; $0.75 million Lease payments = 0.6 million $8.0 million; $1.22 million
- Data for Uberto Company are presented in the following table of rates of return on investment and residual incomes: Invested Assets Income from Operations Return on Investment Minimum Return Minimum Acceptable Income from Operations Residual Income $780,000 $187,200 (a) 13% (b) (c) $620,000 (d) (e) (f) $74,400 $24,800 $330,000 (g) 14% (h) $36,300 (i) $250,000 $50,000 (j) 12% (k) (l) Determine the missing values, identified by the letters above. For all amounts, round to the nearest whole number. a. fill in the blank % b. $ fill in the blank c. $ fill in the blank d. $ fill in the blank e. fill in the blank % f. fill in the blank % g. $ fill in the blank h. fill in the blank % i. $ fill in the blank j. fill in the blank % k. $ fill in the blank l. $ fill in the blankDetermining missing items in return and residual income computations Data for Uberto Company are presented in the following table of rates of return on investment and residual incomes: Invested Assets Income from Operations Return on Investment Minimum Return Minimum Acceptable Income from Operations Residual Income $925,000 $185,000 (a) 15% (b) (c) $775,000 (d) (e) (f) $93,000 $23,250 $450,000 (g) 18% (h) $58,500 (i) $610,000 $97,600 (j) 12% (k) (l) Determine the missing values, identifying each item by the appropriate letter. a. fill in the blank 1% b. $fill in the blank 2 c. $fill in the blank 3 d. $fill in the blank 4 e. fill in the blank 5% f. fill in the blank 6% g. $fill in the blank 7 h. fill in the blank 8% i. $fill in the blank 9 j. fill in the blank 10% k. $fill in the blank 11 l. $fill in the blank 12Mason Corporation had $1,095, 000 in invested assets, sales of $1,258, 000, operating income amounting to $247,000, and a desired minimum return on investment of 15 % . The residual income for Mason Corporation is a. $115,850 b. ($5,100) c. $0 d. $82,750