Presented here is information related to the Southern Division of Pronghorn, Inc. Contribution margin Controllable margin Average operating assets Minimum rate of return Return on investment Compute the Southern Division's return on investment and residual income. Residual income $1,235,600 $931,270 $4,049,000 $ 16 % %
Q: ! Required information E8-3 (Algo) Computing and Recording Cost and Depreciation of Assets…
A: The Cost of an Asset includes the purchase price of the asset and all incidental expenses incurred…
Q: Sweet Acacia Limited owes $240,000 to Marin Inc, on a 10-year, 12% note due on December 31, 2023.…
A: The question is based on the concept of Financial Accounting.Journal entry is the very first step in…
Q: Perpetual inventory using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as…
A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…
Q: Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. The provisions…
A: A defined benefit pension program is given by the employer to its employees. This plan guarantees…
Q: Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round…
A: Since you have posted multiple subparts. I can solve only first three subparts at a time. So please…
Q: Employee's Rates $ • 7.65% on first $118,500 of income • 1.45% on income above $118,500 2016 FICA…
A: FICA stands for Federal Insurance Contributions Act.FICA taxes include social security tax and…
Q: Problem 9.34 (Algorithmic) Direct Materials Usage Variance, Direct Materials Mix and Yield Variances…
A: Standard costing: Under this costing method, the expected costs are used in the accounting records…
Q: Barrett Chemicals manufactures four chemicals, Chem-1, Chem-2, Chem-3, and Chem-4, from a joint…
A: Joint cost refers to the costs incurred in a production process where two or more products are…
Q: Heritage Company uses a job-order costing system to assign costs to jobs. It had no work in process…
A: Work in progress inventory is that inventory which is not completed yet. Finished goods inventory is…
Q: The following are selected 2023 transactions of Marigold Corporation. Sept. 1 Oct. 1 1 (a) Prepare…
A: Journal entry: It basically refers to the accounting or recording of the day-to-day or routine…
Q: How can one achieve a worthy while content when writing. Consider the following 1. Credibility 2.…
A: Achieving a worthy and compelling content requires attention to several key aspects, including…
Q: Crane Company has a new product going on the market next year. The following data are projections…
A: The net income is calculated as difference between sales and total costs. The markup % is calculated…
Q: The Jewel Box purchases jewellery from around the world and sells to local retailers in Canada.…
A: A journal is the initial book of entries where financial transactions are recorded in chronological…
Q: Assume the following information: Direct materials $70,000 Direct Labor $35,000 Variable…
A: The product costs are the costs that are related directly or indirectly to the production process.…
Q: Determine your tax liability if you are filing single using the standard deduction of $12,000 and…
A: Lets understand the basics.Taxable income is a income arrived by deducting either standard deduction…
Q: Accounts receivable and uncollectible accounts) The following information relates to Bedford…
A: Accounts receivable are those customer accounts to whom business has made credit sales and amount…
Q: Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed…
A: Lets understand the basics.Costs are mainly divided into two types which are,(1) Variable costs(2)…
Q: The following selected transactions are from Ohlm Company. Year 1 December 16 Accepted a $10,800,…
A: Notes Receivables is an asset that is reported in the current assets of the company according to the…
Q: May were $568,000. Additional information follows: Product Chem-1 Chem-2 Chem-3 Chem-4 Units…
A: Lets understand the basics.When more than one products get generated from single process then all…
Q: Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's…
A: Manufacturing overhead means all type of indirect costs being incurred in business for production.…
Q: Presented below is a combined single-step income and retained earnings statement for Hardrock Mining…
A: According to the question given, we need to prepare the income statement, and, the statement of…
Q: Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one…
A: The income statement tells about the profitability of the business for the current period. Using…
Q: Below are departmental income statements for a guitar manufacturer. The company classifies…
A: The departmental contribution to overhead is calculated as Gross profit less direct costs of…
Q: Dinnam Kennel uses tenant-days as its measure of activity, an animal housed in the kennel for one…
A: Variance analysis is one of the useful tool for management accounting. Under this, budgets are…
Q: A manufactured product has the following information for August. Direct materials Direct labor…
A: The standard costs are based on planning budget. The static budget is prepared to compare the actual…
Q: The balance sheet for Yakima Corporation reported the following: noncurrent assets, $230,000; total…
A: The working capital is calculated as difference between current assets and current liabilities.It is…
Q: Ayayai Ltd. distributes suitcases to retail stores. At the end of June, Ayayai's inventory consisted…
A: In order to track the business transactions ledger accounts are created. The ledger accounts are…
Q: Shady Fabrication Group (SFG) manufactures components for manufacturing equipment at several…
A: Costing methods refer to the process which is used for making decisions in various situations and…
Q: Bonita Company is trying to determine the equivalent units of production for conversion costs.…
A: EQUIVALENT UNITS OF PRODUCTION Equivalent Production is represents the production of a process in…
Q: On December 31, 2024, when its Allowance for Doubtful Accounts had a debit balance of $1,403,…
A: The journal entries are prepared to record the transactions on regular basis. The allowance for…
Q: A company reported the following transactions. Journalize transactions that should be recorded in a…
A: The cash receipts journal is prepared to record all the cash receipts transactions of the business.…
Q: 9. What is the total amount of this invoice? Materials: $458.00 7.75% sales tax on materials. 28…
A: The total amount will be the sum total of material and labor after discount plus sales tax
Q: Kirby Health Care Center, Inc. has three clinics servicing the Seattle metropolitan area. The…
A: Cost allocation refers to the process wherein the business entities identify, agglomerate, and…
Q: 2023 2022 Accounts receivable 2,820,000 2,397,000 Advances to officers not currently due 180,000…
A: The cash flow statement is one of the primary financial statements prepared to show the changes in…
Q: Journalize the above transactions using General Journal. Post from Journal to Ledger. Prepare trial…
A: A trial balance is very much essential to the company as it is required to be made so that the…
Q: Milford Manufacturing Company has a debt ratio of 60 percent. If the company's debt is $300,000,…
A: When evaluating a company's financial stability and viability, income is a key factor. It is used to…
Q: According to the Original Tipping Page, www.tipping.org, it is appropriate to tip waiters and…
A: To calculate the tax on the Leeseburgs' dinner and determine the tip and total cost, follow these…
Q: These account balances at December 31 relate to Sportring Inc.: Accounts Payable.. $ 51,200…
A: There are two types of shareholders in a company. Preference share holders have preference in…
Q: manufactures video games that it sells for $43 each. The company uses a fixed manufacturing overhead…
A: As per the Honor code of Bartleby we are bound to give the answer of first three sub part only,…
Q: Suggest at least two advantages and two disadvantages of international taxation.
A: International taxation refers to the set of laws, regulations, and practices that govern the…
Q: Depreciation Choices and Outcome. Mulligan Co. purchased a new machine on January 1. The following…
A: Depreciation is used to allocate cost of asset over the period of useful life of asset. There are…
Q: Please answer incorrectly. Mikaere's basis in the Jimsoo Partnership is $64,000. In a proportionate…
A: Proportionate liquidation distribution:- In the course of a liquidation event, such as bankruptcy or…
Q: Ocean Company sells a product with a contribution margin ratio of 80%. Fixed costs are $2,800 per…
A: Lets understand the basics.Break even point is a point at which no profit no loss condition arise.…
Q: Marigold Corp. recorded operating data for its Sandtrap division for the year as follows. Sales…
A: Controllable margin is also known as contribution margin. It is calculated by deducting variable…
Q: Shamrock Inc uses a perpetual inventory system. Date for product E2 D2 includes the following…
A: Weighted Average Method :— It is one of the method of inventory valuation in which it is assumed…
Q: 0 Required information PR 7-41 (Static) CVP Graph; Cost Structure; Operating Leverage (LO 7-2,7-3,…
A: The margin of safety sales is the sales above the break-even sales value. The margin of safety sales…
Q: Part 2: Job Order Costing Mr. Suncat is trying to determine if he should use a job order costing…
A: Job order costing: It is defined as a method of recording the costs of a manufacturing job, rather…
Q: information [The following information applies to the questions displayed below.] On January 1,…
A: It is typically prepared at the end of an accounting period and serves as a preliminary step in the…
Q: Hobbes Corporation’s purchase of stock of Tiger Company gave Hobbes voting control over Tiger. A…
A: The financial position of the company can be arrived from the income statement prepared by the…
Q: he following information relates to Wilson, Inc.’s equipment lease with an inception date of January…
A: Lease liability refers to the obligation that a lessee (the individual or entity leasing an asset)…
Godo
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Knowledge Check East Division of Blue Spruce Anchors provided the following information: Contribution margin Controllable margin Average operating assets Minimum rate of return Return on investment $890,000 $395,900 $2,140,000 Compute the return on investment and the residual income. (Round return on investment answer to two decimal places (e.g., 15.25%).) Residual income 9 % %Investment Center Sales. Net income Average invested assets Profit margin Investment turnover Return on investment Profit Margin: Investment Center A B Investment Turnover: Investment Center A B Choose Numerator: Investment Center Use the information in the table above to compute each department's contribution to overhead (both in dollars and as a percent). (Round your final answers to 2 decimal places.) Return on investment: A B Choose Numerator: Choose Numerator: 1 A 1 $ $ 584,600 $1,580,000 ? 1 10% ? ?% B $12,200,000 $ $ 1 Choose Denominator: Choose Denominator: 1 Choose Denominator: ? ? ?% 1.3 13% = Profit Margin Profit margin 10.00 % % = Investment Turnover = Investment turnover 1.30 Return on investment = Return on investment % 13.00 %Required Complete the following table Sales Operating Income Average Operating Assets Return on Investment Minimum Required Rate of return % Residual Income A 400,000 160,000 20% 15% B Company 750,000 45,000 18% 50,000 C 600,000 150,000 12% 6,000
- Selected data from an investment center of IROL Inc. follow:Sales $8,000,000Net book value of assets, beginning 2,500,000Net book value of assets, ending 2,600,000Net operating income 640,000Minimum rate of return 12%Required1. Calculate return on sales (ROS), asset turnover (AT), and return on investment (ROI).2. Calculate residual income (RI).The following information is available for Sunland Department Stores: Average operating assets Controllable margin Contribution margin Minimum rate of return What is Sunland's residual income? O $59200 O. $160800 O $10800 O $670000 $740000 70000 220000 8%For its three investment centers, Indigo Company accumulates the following data: Sales Controllable margin Average operating assets 1 $2,400,000 $4,800,000 $4,800,000 1,560,000 2.208,000 6,000,000 9,600,000 The return on investment i 11 Compute the return on investment (ROI) for each center. % 111 4,080,000 12,000,000 HE %
- Use the following information to answer the questions. Company X $ 12,480,000 $ 3,120,000 561,600 8.00% Company Y $ 28,480,000 $ 7,120,000 2$ Company Z $ 20,480,000 $ 5,120,000 532,480 Sales Average operating assets Net operating income Minimum required rate of return $ 512,640 8.50% 10.40% 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 Req ЗA Req 3B Each company is presented with an investment…Deuk Seon have the following investment centers. Several items are missing from the following table of rate of return on investment and residual income. Determine the missing items, identifying each item by the appropriate letter. Department Invested Assets Income from Operations Rate of Return on Investment Min. Rate of Return Min. Amt. of Income from Operations Residual Income Taek (a) (b) (c) 16% P128,000 P10,000 Jung Hwan P850,000 P153,000 (d) 12% (e) (f) Sun woo P825,000 (g) 20% (h) (i) P24,000 Dong Ryong (j) P129,000 24% (k) P60,000 (l) (a) Determine the missing items, identifying each by number. (b) Which division is most profitable in terms of income from operations? (c) Which division is most profitable in terms of rate of return on investment?Use 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…
- Required information Use the following information for the Problems below: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate o on invested capital is 8 percent. Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Division A ? $ 440,000 ? 40% 2 ? ? Division A $ 8,150,000 $ 1,630,000 $ 8,150,000 20 % 1.00 $ 978,000 20% Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return capital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places. $ $ $ Division B $ 10,000,000 $ 2,160,000 $ 2,600,000 $ Division B 40,300,000 8,866,000 10,075,000 22 % 4.00 88 % ? ? ? 8,060,000 Division C ? $ ? ? 45% ? 40% $ 139,000 Division C 25 % 20 % 471,000Part I (1) What is residual income and how is it calculated? (2) Please use the information below to calculate the residual income for Divisions A and B, assuming that the company’s minimum rate of return is 15 percent. Income Invested Sales from Operations Assets Division A $500,000 $ 90,000 $400,000 Division B 800,000 144,000 600,000Assume a company reported the following information: Sales Minimum required rate of return on average operating assets Turnover Return on investment (ROI) The residual income is closest to: Multiple Choice O O O $14,800. $10,800. $16,800. $20,800. $ 900,000 9.2% 1.5 12%