Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Sales Net operating income Average operating assets Division Osaka $ 10,100,000 $ 808,000 $ 2,525,000 Yokohama $ 31,000,000 $ 3,100,000 $ 15,500,000 Required: 1. For each division, compute the return on investment (ROI). 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 17%. Compute the residual income for each division.
Q: BE6.6 (LO 2) (Apply perpetual FIFO and average cost.) Battery Limited uses a perpetual inventory…
A: First-in First-Out Method - Under the First-in First-Out Method a company uses inventory in the…
Q: Corporation A has the following shareholders' equity on December 31, 2024 Shareholders' equity Share…
A: Common Stock is shares issued by the organization to the public in consideration of cash. The amount…
Q: During the current year ended December 31, Rank Company disposed of three different assets. On…
A: Assets are the resources owned by the company. They are acquired with an intention to sell or to…
Q: A company issues bonds with a par value of $390,000. The bonds mature in 5 years and pay 8% annual…
A: Bonds payable is a type of instrument where by an amount is borrowed for a fixed period with fixed…
Q: Paulis Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one…
A: Activity variance is the difference between the planned or expected activity and the actual activity…
Q: On January 1, 2024, Nath-Langstrom Services, Incorporated, a computer software training firm, leased…
A: An agreement of contract that is prepared to transfer the right to use the resources for a…
Q: Required: 1-3. Prepare the journal entries by Third BancCorp necessitated by the restructuring of…
A: A debt restructuring journal entries is used by the company so that the actual interest earned which…
Q: Karen sells vacant land that w
A: As per standard accounting practices a gain is realised as and when it is earned irrespective…
Q: Sandhill Corporation's adjusted trial balance contained the following asset accounts at December 31,…
A: Current Asset: It refers to the assets of the business that are reasonably expected to be exhausted,…
Q: For the year ended December 31, 2023, Bonita Ltd. reported income before income taxes of $100,000.…
A: Taxable income is the income subject to tax. The taxable income is used to determine tax liability,…
Q: Total Labor Variance i Tico Inc. produces plastic bottles. Each bottle has a standard labor…
A: Standards are set in advance, from the standards actual performance is measured so as to determine…
Q: 3-4. Daniel, Edwin and Farida are partners in a real estate business. The capital balances of the…
A: The partnership comes into existence when two or more persons agree to do the business and share…
Q: * Your answer is incorrect. Wildhorse Company uses the conventional retail method to determine its…
A: Cost to retail ratio is uses in conventional retail method for the purpose of valuing ending…
Q: On January 1, 2021, Wellburn Corporation leased an asset from Tabitha Company. The asset originally…
A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…
Q: 16 Holloway Company started operations on January 1, Year 1. During Year 1, Holloway earned $4,700…
A: ACCOUNTING EQUATIONAccounting Equation is a Financial Accounting Technique which represents the…
Q: Tomasino's inventory records show the following data at January 31: Beginning inventory Jan. 1 Jan.…
A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…
Q: In June, an investor purchased 400 shares of Oracle (ar purchased an additional 260 shares at $23…
A: The weighted mean price is frequently used to calculate the average cost of assets in a portfolio,…
Q: he balance sheets of Abdul Co. and Lana Co. on ansaction described below, were as follows: Abo 5,000…
A: A journal entry is a basic accounting document that is used to track financial activities inside a…
Q: Calculate the inventory turnover for 2020, 2021, and 2022. (Rou
A: Inventory turnover ratio is a financial ratio.It shows how many times the inventory is sold.It is…
Q: The following information is from Ellerby Company's comparative balance sheets. At December 31…
A: Cash received from sale of furniture that is equal to book value is calculated by deducting…
Q: Exercise 6-11A (Algo) Events related to the acquisition, use, and disposal of a tangible plant…
A: DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and…
Q: Limpiar Company produces a liquid household cleaning product. The Mixing Department, the first…
A: Process Costing : Operation costing method employed to determine the value of a product at each…
Q: Garcia, Incorporated, uses a job-order costing system for its products, which pass from the…
A: Job order costing allows companies to accurately determine the cost of producing individual jobs or…
Q: The controller for Tamale Cooking Oil Co. established the following overhead cost pools and cost…
A: ACTIVITY BASED COSTING Activity Based Costing is a Powerful tool for measuring…
Q: The Biz Company is a retail clothing store. Make journal entries (debit and credit) to record the…
A: A journal entry is a process that records the transactions done by the company in its books. These…
Q: Mower-Blower Sales Company started business on January 20, 2022. Products sold were snow blowers and…
A: Periodic Inventory System:One tool used by firms to monitor the quantity and cost of inventory is…
Q: Depreciation Methods Sorter Company purchased equipment for $280,000 on January 2, 2019. The…
A: Depreciation is considered as an expense charge on the value of the asset. It decreases the value of…
Q: The Dot Corporation has changed its year-end from a calendar year-end to August 31. The income for…
A: Corporate income tax is a tax imposed on the profits or income of corporations and other legal…
Q: Rainwear Inc., a merchandiser, prepared the following partial income statement before taking into…
A: Income Statement is a financial statement which reports a firm's financial performance over a…
Q: Black Cat Corporation produced 2,100 units in Job 903. The following data is provided for Job 903 fo…
A: The overhead that has been overallocated or under-allocated is the difference between the overhead…
Q: Annika has $200,000 of QBI from her neighborhood clothing store (a sole proprietorship). Her…
A: A qualified business income (QBI), is the net of business income or loss from the business,…
Q: Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income…
A: Lets understand the basics.Contribution margin ratio is a ratio which shows how much contribution is…
Q: Checkpoint uses the periodic inventory system. For the current month, the beginning inventory…
A: Ending inventory is the amount of inventory that an entity has on hand at the end of the period. It…
Q: Periodic inventory by three methods; cost of goods sold The units of an item available for sale…
A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…
Q: Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company…
A: Direct material cost is the cost of raw material produced or purchased to produce the final…
Q: The following are selected transactions of Oriole Company. Oriole sells in large quantities to other…
A: Journal entry is the first stage of accounting process.Journal entry used to record business…
Q: Problem 5-10 (Static) (LO 5-7) Thomson Corporation owns 70 percent of the outstanding stock of…
A: Straight-line method of depreciation refers to the amortization of the cost of depreciable assets…
Q: The following transactions were selected from the records of Evergreen Company: July 12 Sold…
A: Net Sales is a figure computed after deducting sales discount and sales return and allowances. After…
Q: equired: 1. Prepare the journal entries that would be recorded on July 1 for: a. alternative a. b.…
A: a In this situation we will debit the cash /ac by $600000 and credit the notes payable by…
Q: Income Statement Decline in Net Income Express the following comparative income statements in…
A: The gross profit is calculated as the difference between the sales and cost of goods sold. The…
Q: Windsor Sports began operations on January 2, 2025. The following stock record card for footballs…
A: The inventory value depends on two factors i.e., the method selected for inventory valuation and the…
Q: *BE12-7 Gamma Co. capital balances are Barr $30,000, Croy $25,000, and Eubank $22,000. The partners…
A: It is arrangement between the two or more parties to agree to share ownership, responsibilities and…
Q: ok nt ences Brite Ideas, Inc., mass-produces reading lamps. Materials used in constructing the body…
A: Process Costing : Operation costing method employed to determine the value of a product at each…
Q: Required Question: If Auto Company wants to maintain product mix in the budget, and given the…
A: Variable costs are those costs which changes with change in level of costs. Fixed costs do not…
Q: March 3 Purchases inventory on account for $3,500, terms 2/10, n/30. March 5 Pays freight costs of…
A: Journal entries refers to the entries which records the business transactions into the books of the…
Q: Sheffield Company determined its ending inventory at cost and at lower of cost and net realizable…
A: Periodic inventory requires a company to do a physical inventory count at regular periods, often at…
Q: ! Required information [The following information applies to the questions displayed below.]…
A: LIFO method is one of the methods of inventory valuation in which it is assumed that recent or new…
Q: Culver Inc. uses a perpetual inventory system. Its records show the following for the month of May.…
A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…
Q: Preparation, evaluation and use of cash budget Description: Grenoble Enterprises had sales of…
A: Cash budget is the statement that records all the cash inflow and cash outflow transactions during…
Q: Pharoah Company, organized in 2024, has set up a single account for all intangible assets. The…
A: An asset that lacks a physical form is said to be intangible. It is a long-term asset with annual…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- The operating income and the amount of invested assets in each division of Conley Industries are as follows: a. Compute the return on investment for each division. b. Which division is the most profitable per dollar invested? Based on the data in Exercise 10 assume that management has established a 15% minimum acceptable return for invested assets. a. Determine the residual income for each division. b. Which division has the most residual income?The condensed income statement for the Consumer Products Division of Tri-State Industries Inc. is as follows (assuming no support department allocations): The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that 143,750,000 of assets have been invested in the Consumer Products Division. b. If expenses could be reduced by 3,450,000 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the Consumer Products Division?Meiji Isetan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Sales Net operating income Average operating assets Required: Osaka Division $ 10,800,000 Yokohama $ 38,000,000 $ 648,000 $ 3,600,000 $ 3,040,000 $ 19,000,000 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 15%. Compute the residual income for each division. 3. Is Yokohama's greater amount of residual income an indication that it is better managed? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For each division, compute the return on investment (ROI) in terms of margin and turnover. ROI Osaka Yokohama % %
- Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 9,500,000 $ 25,000,000 Net operating income $ 855,000 $ 2,750,000 Average operating assets $ 2,375,000 $ 12,500,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 18%. Compute the residual income for each division. 3. Is Yokohama’s greater amount of residual income an indication that it is better managed?Meiji Isetan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 11,000,000 $ 40,000,000 Net operating income $ 880,000 $ 4,000,000 Average operating assets $ 2,750,000 $ 20,000,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 18%. Compute the residual income for each division. 3. Is Yokohama’s greater amount of residual income an indication that it is better managed?Meiji Isetan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 9,800,000 $ 28,000,000 Net operating income $ 588,000 $ 2,240,000 Average operating assets $ 2,450,000 $ 14,000,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 14%. Compute the residual income for each division. 3. Is Yokohama’s greater amount of residual income an indication that it is better managed? Osaka Yokohama ROI % % Osaka Yokohama Residual income
- Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 9,700,000 $ 27,000,000 Net operating income $ 776,000 $ 2,700,000 Average operating assets $ 2,425,000 $ 13,500,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 17%. Compute the residual income for each division.Meiji Isetan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 9,800,000 $ 28,000,000 Net operating income $ 588,000 $ 2,240,000 Average operating assets $ 2,450,000 $ 14,000,000 Required: 1a. For each division, compute the return on investment (ROI) in terms of margin and turnover. Osaka Yokohama ROI ?# % ?# % 1b. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 14%. Compute the residual income for each division. Osaka Yokohama Residual income ?# ?# 1c. Is Yokohama’s greater amount of residual income an indication that it is better managed? YESMeiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 11,000,000 $ 40,000,000 Net operating income $ 880,000 $ 4,000,000 Average operating assets $ 2,750,000 $ 20,000,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 18%. Compute the residual income for each division. 3. Is Yokohama’s greater amount of residual income an indication that it is better managed? REQUIRED 1 For each division, compute the return on investment (ROI) in terms of margin and turnover. Osaka Yokohama ROI % % REQUIRED 2 Assume that the company evaluates performance using residual income and that the minimum…
- Consider the following data and determine which of the corporate divisions is more profitable. Explain your reasoning. Domestic International Operating income $8,000,000 $ 11,000,000 Average total assets 20,000,000 32,000,000 C Begin by selecting the formula to calcula return on investment (ROI), and then enter the amounts to calculate each division's ROI. (Enter your answer as a percent rounded to one decimal place, X.X%) ROI % Domestic % International In terms of return on investment (ROI) the Division is more profitable becauseMeiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 3,000,000 $ 9,000,000 Net operating income $ 210,000 $ 720,000 Average operating assets $ 1,000,000 $ 4,000,000 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 15%. Compute the residual income for each division. 3. Is Yokohama’s greater amount of residual income an indication that it is better managed?Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Sales Set operating income. Average operating assets Required: 1. For each division, compute the return on investment (ROI). 2. Compute the residual income for each division assuming the company's minimum required rate of return is 16%. Complete this question by entering your answers in the tabs below. Division Osaka Yokohana $9,600,000 $ 26,000,000 $672,000 $2,340,000 $3,200,000 $ 13,000,000 Required 1 Required 2 For each division, compute the return on investment (ROI). RO Osaka Yokohama Required Required 2 >