0 Required information [The following information applies to the questions displayed below] The managers of the XYZ clubs, who have the authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's X Club reported the following results for the past year: $ 340,000 $ 24,360 $ 100,000 The following questions are to be considered independently. Sales Net operating income Average operating assets 2. Assume that the manager of the club is able to increase sales by $84,000 and that, as a result, net operating income increases by $7,056. Further assume that this is possible without any increase in average operating assets. What would be the club's return on investment (ROI)? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI)
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- The standardized approach for calculating operational risk capital requirements uses beta factors for a given business line and annual gross income for business lines over a 3-year period. Which of the following business units has the highest beta factor? A. Trading and sales. B. Retail banking. C. Agency and custody services. D. Asset management.You are an investment analyst at FI Investments tasked to value FBC firm a Southern Agricultural Conglomerate. The following financial information was recently released for FBC. The company’s 2018 and 2017 annual financial reports are contained in tables 1 and 2 below, along with important additional information: Table 1: FBC statement of financial position (R millions)2018 2017Cash and equivalents R149 R83Accounts receivable 295 265Inventory 275 285Total current assets R719 R633Total fixed assets 3 909 3 856Accounts payable 228 220Notes payable 0 0Total current liabilities 228 220Long term debt 1 800 1 650Total liabilities and shareholders equity 3 909 3 856Number of shares outstanding (millions) 100 100 Additional information:• Depreciation (2018): R483.• The firm spent R250m in profitable projects during the course of 2018• WACC : 15%• Cost of equity of the firm: 10%• Tax rate : 40%Table 2: FBC statement of comprehensive income(R millions except for share data)2018 2017Total…You are an investment analyst at FI Investments tasked to value FBC firm a Southern Agricultural Conglomerate. The following financial information was recently released for FBC. The company’s 2018 and 2017 annual financial reports are contained in tables 1 and 2 below, along with important additional information: Table 1: FBC statement of financial position (R millions)2018 2017Cash and equivalents R149 R83Accounts receivable 295 265Inventory 275 285Total current assets R719 R633Total fixed assets 3 909 3 856Accounts payable 228 220Notes payable 0 0Total current liabilities 228 220Long term debt 1 800 1 650Total liabilities and shareholders equity 3 909 3 856Number of shares outstanding (millions) 100 100 Additional information:• Depreciation (2018): R483.• The firm spent R250m in profitable projects during the course of 2018• WACC : 15%• Cost of equity of the firm: 10%• Tax rate : 40%Table 2: FBC statement of comprehensive income(R millions except for share data)2018 2017Total…
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- forecasted balance sheet is calculated from asset ratios that management has reviewed and changed based on industry and benchmark averages. An Excel spreadsheet is used for this analysis because changes in assumptions, financing, and ratios can be made to the statements to review alternative scenarios. The impact of these changes on the firm's forecasted financial statements ultimately can be used to improve the firm's operations. Quantitative Problem: At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales Operating costs excluding depreciation EBITDA Depreciation $4,250.00 3,016.00 $1,234.00 320.00 $914.00 150.00 $764.00 305.60 $458.40 Looking ahead to the following year, the company's CFO has assembled this information: EBIT Interest EBT Taxes (40%) Net income ▪ Year-end sales are expected to be 4% higher than $4.25 billion in sales generated last year. ▪ Year-end operating costs, excluding depreciation, will equal 80% of sales. ■…lab mcome statement. In an accounting conference discussion turned to the possibility of pre- paring financial statements from a few key accoun ts, together with financial or cost latioos he assistant controller of a participating firm provided the following data: pretax income for the year, $1,200,000; pretax income rate on sales. 10%: gross profit rate, 40%; rate of marketing expenses to sales, 15%; 5% bonds payable represent 37.5% of the total liabilities of $2,000,000. Required: An income statement for the year based on the above information. Ma Re Incom e etatenmonti ooo the Yu ken Refrigerator CoompanyYou are an investment analyst at FI Investments tasked to value FBC firm a Southern Agricultural Conglomerate. The following financial information was recently released for FBC. The company’s 2018 and 2017 annual financial reports are contained in tables 1 and 2 below, along with important additional information: FBC statement of financial position (R millions) 2018 2017 Cash and equivalents R149 R83 Accounts receivable 295 265 Inventory 275 285 Total current assets R719 R633 Total fixed assets 3 909 3 856 Accounts payable 228 220 Notes payable 0 0 Total current liabilities 228 220 Long term debt 1 800 1 650 Total liabilities and shareholders equity 3 909 3 856 Number of shares outstanding (millions) 100 100 Additional information: Depreciation (2018): R483. The firm spent R250m in profitable projects during the course of 2018…