The following are available for divison X and Y Profit before interest and tax X 185 000 Y172 000 Capital employed X 1 540 000 Y 1 650 000 The cost of capital is 10% comment on the performance of the departments based on a. Return on capital employed b.residual income
Q: When Wisconsin Corporation was formed on January 1, the corporate charter provided for 95,400 shares…
A: The objective of the question is to determine the correct journal entry for the issuance of common…
Q: Cole purchased a car for business and personal use. In 2022, he used the car 60% for business…
A: Business deductions refer to the expenses that a business can subtract from its total income when…
Q: Problem 3-12 (Static) Predetermined Overhead Rate; Disposing of Underapplied or Overapplied Overhead…
A: The Basic Formula Used:- 1. Predetermined Overhead Rate =Total Manufacturing Overhead/Expected…
Q: Wayman Corporation reports the following amounts in its December 31, 2024, income statement. Sales…
A: The income statement is one of the important financial statements of the business. The net income…
Q: Question: What is the purpose of the cash flow statement? a. Summarize a company's revenue and…
A: Cash Flow Statement is the summary of cash receipts and cash payments for the period. There are…
Q: “There is no comprehensive conceptual framework of what Strategic Management Accounting is. Instead…
A: The objective of this question is to analyze the concept of Strategic Management Accounting (SMA),…
Q: Inacio Corporation uses the weighted average method in its process costing system. Data concerning…
A: Direct material cost is the cost of raw material produced or purchased to produce the final…
Q: The inventory costing method that matches each unit of inventory with its actual cost is referred to…
A: There are many methods to calculate the inventory like FIFO and LIFO method, average cost method,…
Q: When recording the depreciation of equipment in a journal entry using the straight-line method, what…
A: Under double entry system of book keeping one account debited and other is credited.Assests and…
Q: Required information [The following information applies to the questions displayed below.] Simpson,…
A: Calculation of Total medical expenses:Computation of Total medical expensesDescriptionsAmountDentist…
Q: John makes $300,000 as a single filer. How much is he likely to pay in taxes using marginal tax rate…
A: The formula used to calculated the tax liability is as follows:Tax on Bracket=(Taxable Income in the…
Q: Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and sales for WCS12 are…
A: Computation of ending inventory COGS under Weighted Average Cost - WCS12DateBeginning…
Q: On June 30, 2019, Wally Company's bank statement showed a $7,500.10 bank balance. Wally has a…
A: Bank Reconciliation Statement: A bank reconciliation statement is a statement which is prepared to…
Q: The accounts of Tim Tam Inc. showed the following Debit balances at the beginning of December:…
A: The objective of the question is to calculate the balance in the Manufacturing Overhead account…
Q: Exploit Media, LLC, has three members: WACS Partners, Elyse O’Reilly, and Encounter Newspaper, LLC.…
A: Parnership is formed by more than one business entity or individuals to expand their business. They…
Q: In Year 1, Lee Inc. billed its customers $56,600 for services performed. The company collected…
A: " Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: If $467,000 of 7% bonds are issued at 98, the amount of cash received from the sale is a.…
A: The question is asking us to calculate the amount of cash received from the sale of bonds. The bonds…
Q: Brooks Advertising pays Lee Young S97,290 per year. Requirements 1. What is the hourly cost to…
A: Direct labor cost is the amount of cost incurred on labor, which is directly involved in the…
Q: Ann Marcus, CPA, is performing an audit for one of her clients, Artistcraft Ltd., a glass factory,…
A: 1. The balances of the long-term debt and the interest rate are taken from bank confirmations which…
Q: Summatra Corporation issued $1,200,000 of five year 8% term bonds on January 1, 2012 with interest…
A: Journal entries are the primary reporting of the business transactions in the books of accounts.…
Q: Compute its cash flow using the following format. (In
A: The cash flow statement is a financial statement which shows the inflow and outflow of cash of the…
Q: ccounts receivable turnover and days' sales in receivables or two recent years, Robinhood Company…
A: The account receivables turnover ratio is calculated as the net sales divided by average account…
Q: Nancy Inc., incurred the following actual overhead costs for the month of April: Account Cost…
A: The objective of the question is to determine the balance of the Manufacturing Overhead (MOH)…
Q: Consider the following financial data from the past year for Midwest Outdoor Equipment Corporation.…
A: Financial Ratios: These are defined as the numerical figures that establish a relationship between…
Q: On June 3, 20X1, Alaska State Company received a $6,600, 45-day, 12 percent note from Samuel Adams,…
A: Journal entries are made to record the transactions as the first process in the books of accounts…
Q: C. Assume that Seifert Stores sold $25,000,000 of merchandise in February, which generated…
A: Estimated Coupons Payable refers to the liability a company records for the value of coupons that it…
Q: The following information relates to a joint production process for three products, with a total…
A: Joint cost refers to the cost incurred by the company for various process or products in its…
Q: Transactions that affect inventories on hand have an effect on both the balance sheet and the income…
A: Inventory on hand is Closing Inventory is a Current Assets and it is shown in Income Statement and…
Q: Cao Inc. has worked on the following jobs during the first quarter of the year. The list of each job…
A: The objective of the question is to calculate the ending balance of the Work-in-process inventory…
Q: On September 1, Riverbed Office Supply had an inventory that included a variety of calculators. The…
A: Journal entries are the part of accounting system cycle of the business entity. It identifies,…
Q: Ref. J1 J1 Debit 12,900 0 Credit 0 4,500 B
A: CashDateDebitCreditBalance01-Sep $ 12,900 $ 12,90005-Sep $ 4,500 $ 8,40025-Sep…
Q: a. Gross income b. Adjusted gross income c. Itemized deduction or standard deduction amount d.…
A: Gross Income = Salaries + Taxable interest + Royalties + Other ordinary incomeAdjusted Gross Income…
Q: O Liability Insurance Expense.
A: Sud account is smaller account under a larger account . It is uesful to track different activites…
Q: A contract that only one of the parties can enforce in a court is not valid. True False
A: An agreement containing various terms and conditions; rights and obligations to perform that are…
Q: The adjusted trial balance of Heritage Book Store and Supply Company as of November 30, 20X1, after…
A: The preparation of the adjusted trial balance is the step of the accounting cycle. This trial…
Q: A cash register tape reflected total sales equaling $100, but the cash in the cash register drawer…
A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…
Q: The total assets and total liabilities (in millions) of ABC Corporation and XYZ Corporation follow:…
A: The basic accounting equation formula is:Total Assets = Total Liabilities + Stockholder's…
Q: Which of the following best describes goodwill impairment in accounting? A) Goodwill impairment…
A: At each reporting date, an entity is required to assess whether there is any indication that an…
Q: uestion: What is the formula for calculating the current ratio? a. Current Assets / Current…
A: The ratio analysis helps to analyze the financial statements of the business. The liquidity ratios…
Q: Tyrone, who is single and under age 65, had the following income in 2022: $59,800 in wages $200 in…
A: The objective of the question is to calculate the total amount of Schedule A itemized deductions…
Q: The following is information for Palmer Company. Year 3 Year 2 Year 1 Cost of goods sold $ 643,825…
A: Inventory: This includes all the raw materials, finished items, goods in stock, and work-in-progress…
Q: Accounts receivable analysis The following data are taken from the financial statements of Sigmon…
A: The ratio is the technique used by the prospective investor or an individual or strategist to read…
Q: The following information is available for Monty Corp. for 2023: Payment for goods during year…
A: Cost of Goods Sold (COGS) is the total cost incurred by a business to produce the goods sold during…
Q: Cheyenne Supplies' total material costs are $26,400 and total conversion costs are $17,600.…
A: The equivalent cost can be calculated by dividing the total cost with equivalent units. Production…
Q: The balance sheet for Tactex Controls Inc., provincially incorporated in 2018, reported the…
A: The statement of change in equity and the equity portion of balance sheet are parts of the financial…
Q: Auditors can help avoid litigation by implementing policies and procedures that ensure all work is…
A: Auditors can help avoid litigation by implementing policies and procedures that ensure all work is…
Q: Inventory Raw materials Work in process Finished goods Beginning Ending $9,600 $14,080 7,400 5,200…
A: The cost of goods manufactured is the total cost of producing the goods. It includes direct material…
Q: Stan Adams started a landscaping business in 2017 and during the month of January the following…
A: Trial balance is the statement which is prepared by the entity to check if the debits in the books…
Q: On January 1, 2023, Ridge Road Company acquired 25 percent of the voting shares of Sauk Trall,…
A: On January 1, 2023, Ridge Road company acquired 25% of the voting shares of Sauk Trail's Inc., for…
Q: If White Mountain Railway's fixed costs total $80,000 per month, the variable cost per passenger is…
A: Contribution margin per unit = Selling price per unit - Variable cost per unitContribution margin…
The following are available for divison X and Y
Profit before interest and tax X 185 000 Y172 000
Capital employed X 1 540 000 Y 1 650 000
The cost of capital is 10%
comment on the performance of the departments based on
a. Return on capital employed
b.residual income
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- The following results are available for Division X and Y:Division X Division YProfit before interest and tax P185 000 P172, 000Capital employed P1, 540, 000 P1, 650, 000The cost of capital is 10%.Calculate and comment on the performance of the departments based on:a. Return on capital employed (4 marks)b. Residual incomDetermining missing items in return and residual income computations Data are presented in the following table of returns on investment and residual incomes: Invested Assets Operating Income Return on Investment Minimum Return on Investment Minimum Acceptable Operating Income Residual Income $1,200,000 $198,000 (a) 12% (b) (c) $800,000 (d) (e) (f) $120,000 $40,000 $750,000 (g) 14% (h) $90,000 (i) $1,800,000 $441,000 (j) 15% (k) (l) Determine the missing items, identifying each item by the appropriate letter. Round your percentages to one decimal place. 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…Determining missing items in return and residual income computations Data are presented in the following table of returns on investment and residual incomes: Invested Assets Operating Income Return on Investment Minimum Return on Investment Minimum Acceptable Operating Income Residual Income $1,200,000 $198,000 (a) 12% (b) (c) $800,000 (d) (e) (f) $120,000 $40,000 $750,000 (g) 14% (h) $90,000 (i) $1,800,000 $441,000 (j) 15% (k) (l) Determine the missing items, identifying each item by the appropriate letter. Round your percentages to one decimal place. a. % b. $ c. $ d. $ e. % f. % g. $ h. % i. $ j. % k. $ l. $
- If given the following information: Current Assets - 2073Current Liabilities - 1634Cash - 1182Inventory - 316Net working capital - 934Total Assets - 3873Average Daily Operating Costs - 344 Find the Current Ratio.Consider the following income statement: Sales $909,407 Costs 484,977 Depreciation 149,723 Taxes 0.28 Calculate OCF.Determining missing items in return and residual income computations Data are presented in the following table of returns on investment and residual incomes: Invested Assets Operating Income Return on Investment Minimum Return on Investment Minimum Acceptable Operating Income Residual Income $870,000 $200,100 (a) 13% (b) (c) $520,000 (d) (e) (f) $57,200 $26,000 $340,000 (g) 14% (h) $37,400 (i) $260,000 $49,400 (j) 11% (k) (l)
- When the account property, plant and equipment are presented in a statement as 20% of the total assets, this exemplifies: A profitability horizontal analysis C) efficiency D vertical analysisBelow is given the data for the assembly division of Charles Corporation: Sales Cost of Sales Operating Expenses $10,000,000 $15,000,000 Average Operating Assets $250,000,000 $310,000,000 2020 2021 $100,000,000 $165,000,000 $22,000,000 $28,000,000 Minimum Required Rate of Return Actual Cost of Capital Income Tax Rate Instructions 1. Compute the margin and turnover ratios for each year 2. Compute the ROI for each year 3. Compute the residual income for each year 4. Compute EVA for Charles Corporation for each year (Note: Round to 2 decimal) MacBook Air 9% 6% 30%a. D supplied following data are for the latest year of operations: Sales ₱24,480,000; Operating income ₱1,738,080; Average operating assets ₱6,000,000. Required rate of return 16% 1. What is D's ROI? 1. What is D's residual income?
- The following are the details from the income statements of division S and division C for the year ending March 2014. Figures in TZS "000" Sales revenue 100,000 64,000 6,000 120,000 75,000 10,000 150,000 Operating cost Interest cost Capital invested 122,000 Capital invested include debt WACC 10% 12.5% Rate of corporate tax 40% 44% Required: Calculate NOPAT as adjusted for EVA and also calculate EVA for both the divisions. Which Division performed better?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?Consider the following given information below: Total Income P1,321,000 Total Distribution Cost 268,900 Total Administrative Cost 250,200 Other Expenses 8,000 Interest Expense 9,000 Total Expenses 536,100 Income Tax Expense 235,500 What is the amount of income before tax to be reflected in the income statement?