Use the following information to answer the questions.Company X$ 12,480,000$ 3,120,000561,6008.00%Company Y$ 28,480,000$ 7,120,0002$Company Z$ 20,480,000$ 5,120,000532,480SalesAverage operating assetsNet operating incomeMinimum required rate of return$512,6408.50%10.40%Required:1. Compute the return on investment (ROI) for each company using the formula stated in terms of margin and turnover.2. Compute the residual income (loss) for each company.3. Each company is presented with an investment opportunity that would yield a 9% rate of return.a. Assume performance is measured based on ROI. Indicate whether each company will likely accept or reject the investmentopportunity.b. Assume performance is measured based on residual income. Indicate whether each company will likely accept or reject theinvestment opportunity.Complete this question by entering your answers in the tabs below.Req 1Req 2Req ЗAReq 3BEach company is presented with an investment opportunity that would yield a 9% rate of return. Assume performance ismeasured based on ROI. Indicate whether each company will likely accept or reject the investment opportunity.Company XCompany YCompany Z< Req 2Req 3B > Use the following information to answer the questions.Company X$ 12,480,000$ 3,120,000$Company Y$ 28,480,000$Company z$ 20,480,000$ 5,120,000532,48010.40%SalesAverage operating assetsNet operating incomeMinimum required rate of return7,120,000512,6408.50%561,6008.00%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 investmentopportunity.b. Assume performance is measured based on residual income. Indicate whether each company will likely accept or reject theinvestment opportunity.Complete this question by entering your answers in the tabs below.Req 1Req 2Req 3AReq 3BEach company is presented with an investment opportunity that would yield a 9% rate of return. Assume performance ismeasured based on residual income. Indicate whether each company will likely accept or reject the investment opportunity.Company XCompany YCompany Z< Req 3AReq 3B >

Return on Investment = Net Operating IncomeAverage Operating Assets Residual Income = Net…

Use the following information to answer the questions. Company X $ 12,480,000 $ 3,120,000 2$ Company Y $ 28,480,000 $ 7,120,000 Company Z $ 20,480,000 $ 5,120,000 532,480 Sales Average operating assets Net operating income Minimum required rate of return 561,600 $ 512,640 24 8.00% 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.

Use the following information to answer the questions. Company X $ 12,480,000 $ 3,120,000 2$ Company Y $ 28,480,000 $ 7,120,000 Company Z $ 20,480,000 $ 5,120,000 532,480 Sales Average operating assets Net operating income Minimum required rate of return 561,600 $ 512,640 24 8.00% 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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…
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.
Remember: Gross profit = SP- CP Activity 1.2 enti Complete the following table: Table 1.2: Finding the cost price, the gross profit or the selling price No Cast price Gross prafit Selling price 1.2.1 R5 600 R8 700 1.2.2 R3 400 30% 1.2.3 R6 800 R12 700 1.2.4 R17 500 R35 000 The owner of an enterprise has to calculate both the gross and the net profit. A business has certain operating expenses thai must be deducied from the gross profit to get the net profit. Examples of operating expenses are: • Salaries Wages • Rent paid/rent expense • Advertisements • Stationery. The cost of advertising the business is one example of an operating expense. Gross profit minaş operating expenses equals net profit."
Requirement 2: Revise the data in your worksheet as follows: A 1 Chapter 11: Applying Excel 2 3 Data 4 Sales 5 6 7 Net operating income Average operating assets Minumum required rate of return ROI If your formulas are correct, you should get the correct answers to the following questions. a. What is the ROI? $ 24,000,000 $ 3,360,000 $ 6,000,000 24% % Residual income b. What is the residual income? (Negative amount should be indicated by a minus sign.) c. Why is the residual income positive? The ROI exceeds the minimum required rate of return
Assume a company had net operating income of $300,000, sales of $1,500,000, residual income of $130,000, and a minimum required rate of return on average operating assets of 14.00%. The company's average operating assets are closest to: Multiple Choice $1,214,286. $1,035,715. $1,157144. $1,200,000. 田

Management has at its disposal the following information: Revenue function: R =890Q ‒5.5Q2 The profit-maximizing price: P=494 OMR. Then the Profit-maximizing quantity is (............) Units. (write only the number) Answer:
Chapter 10: Applying Excel: Exercise (Part 2 of 2) Requirement 2: Revise the data in your worksheet as follows: A 1 Chapter 10: Applying Excel 2 3 Data 4 Sales 5 6 7 Net operating income ROI Average operating assets 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? Residual income B % c. Why is the residual income positive? $ 64,000,000 $ 7,680,000 $ 16,000,000 25% b. What is the residual income? (Negative amount should be indicated by a minus sign.)
20. From the following data calculate: a) P/V Ratio b) Variable cost and c) Profit Rs 80,000 15,000 50,000 Sales Fixed expenses Break even point 000.00 Answer all the question PART-C 21 What are the objectives of management accoun Or b) Distinguish between management accounting a accounting. 22. From the following information calculate the b Total asset/Net worth a. = 3.5 Sales/fixed assets = 6 -
Use AstroTurf Company's income statement below to answer the following questions. Operating costs (excl. depreciations & amortization): $4.5mDepreciation and amortization: $1.5mInterest: $0.7mNet Income: $2.8mTax Rate: 35%1. Calculate AstroTurf’s EBITDA. Input your final answer here : Explanation: Provide a step-by-step explanation for how you arrived at your above solution as though you were teaching a student to solve this type of problem. Provide a clear explanation, showing any steps or processes used to reach the answer. What level of sales would generate a net income of $4.2m for the following year, knowing that operating costs (excl. depreciation and amortization) will increase by 7.5%, and given a 35% tax rate. Explanation: Provide a step-by-step explanation for how you arrived at your solution as though you were teaching a student to solve this type of problem.
Data Sales Net operating income Average operating assets Minimum required rate of return Enter a formula into each of the cells marked with a ? below Review Problem: Return on Investment (ROI) and Residual Income Compute the ROI Margin Turnover ROI Compute the residual income Average operating assets $25,000,000 $3,000,000 $10,000,000 25% Net operating income Minimum required return Residual income ? ? ? ? ? ? ?
Determining Missing Items in Return Computation One item is omitted from each of the following computations of the return on investment: Rate of Return on Investment = Profit Margin x Investment Turnover 20% 10 % (a) (b) 24 % 0.75 21 % (c) 1.5 10 % 20% (d) (e) 15 % 2. Determine the missing items identified by the letters as shown above. If required, round your answers to two decimal places. (a) (b) (c) (d) (e) %3D
Question 3: Sobar Company's financial information is given in the table below. Sales (OMR) Fixed Costs 405000 450000 Variable Costs 225000 240000 Year 2019 90000 | 2020 120000 Calculate: a) P/V ratio, b) B.E.P.