37. Nantucket Company has two divisions that report on a decentralized basis. Their results for 2016 were as fol- lows: Sales Income Asset base Weighted average cost of capital Required: Compute the following amounts for each division: Return on investment (ROI). Residual income if the desired rate of return is 20 percent. Turnover. Margin for each division. Helmet $150,000 $ 15,000 $ 75,000 12% Ball $300,000 $ 45,000 $150,000 12%
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- Forchen, Inc., provided the following information for two of its divisions for last year: Required: 1. For the Small Appliances Division, calculate: a. Average operating assets b. Margin c. Turnover d. Return on investment (ROI) 2. For the Cleaning Products Division, calculate: a. Average operating assets b. Margin c. Turnover d. Return on investment (ROI) 3. What if operating income for the Small Appliances Division was 2,000,000? How would that affect average operating assets? Margin? Turnover? ROI? Calculate any changed ratios (round to four significant digits).Use the following information for the Problems below: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Sales revenue Income Average investment Sales margin k Capital turnover ROI Residual income Division A ? Division B Division C $ 11,000,000 ? $ 550,000 $ 2,160,000 ? ? $ 2,610,000 ? 20% ? 25% 3 ? ? ? ? 20% ? ? $ 130,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue Income S 40,700,000 $ 1,840,000 $ 8,140,000 Average investment $ 10,175,000 + Sales margin 20 % % 25 % Capital turnover ROI Residual income 1.00 % % 20 % $ 489,000Required 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 % 471,000
- 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 of return 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 ? $ 580,000 7 20% $ Division A 1,770,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places. 20 % 1.00 % Division B $ 11,000,000 $ 2,040,000 $ 2,630,000 $ $ $ Division B 41,700,000 8,340,000 10,425,000 % ? % Division C $ 7 25% ? 30% $ 132,000 Division C 25 % 20% 516,000Required 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 of return on invested capital is 8 percent. Sales revenue Income Division A ? Division B Division C $ 11,000,000 ? $ 530,000 $ 2,130,000 ? Average investment ? $ 2,500,000 ? Sales margin 30% ? 35% Capital turnover 2 ? ? ROI Residual income ? ? ? 40% ? $ 139,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 10 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue $ 40,100,000 Income $ 1,650,000 $ 8,822,000 Average investment $ 10,025,000 Sales margin 22 % % 25 % Capital turnover ROI Residual income 1.00 200 % % $ 69 22 % 450,000The following data are available for two divisions of Solomons Company. North Division $10,535,000 49,000,000 South Division $ 47,460,000 339,000,000 Division operating profit Division investment The cost of capital for the company is 8 percent. Ignore taxes. Required: a-1. Calculate the ROI for both North and South divisions. a-2. If Solomons measures performance using ROI, which division had the better performance? b-1. Calculate the EVA for both North and South divisions. (The divisions have no current liabilities.) b-2. If Solomons measures performance using economic value added, which division had the better p c. Would your evaluation change if the company's cost of capital was 17 percent? 1. When evaluated by ROI? 2. When evaluated by EVA? Complete this question by entering your answers in the tabs below. Req A1 Divisions North South Reg A2 estion 12- Hom... Calculate the ROI for both North and South divisions. (Enter your answers as a percentage rounded to 1 de 32.1).) ROI Req…
- The following data are available for two divisions of Ryan Enterprises: Alpha Division Beta Division Division operating profit $ 7,360,000 $ 1,240,000 Division investment 32,160,000 3,160,000 The cost of capital for the company is 7 percent. Ignore taxes. Required: a-1. Calculate the ROI for both Alpha and Beta divisions. a-2. If Ryan measures performance using ROI, which division had the better performance? b-1. Calculate the EVA for both Alpha and Beta divisions. (The divisions have no current liabilities.) b-2. If Ryan measures performance using economic value added, which division had the better performance? c. Would your evaluation change if the company’s cost of capital was 10 percent, when evaluated by ROI? when evaluated by EVA?! 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 of return on invested capital is 8 percent. Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Division A ? $ 560,000 Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Division A $ 8,750,000 $ 1,750,000 $ 8,750,000 20 % 1.00 20 % ? 30% 2 ? ? $ 1,050,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division B $ 11,000,000 $ 2,020,000 $ 2,610,000 $ $ $ Division B 41,000,000 9,020,000 10,250,000 22 % ? ? ? ? % Check my work $ Division C ? ? ? 35% ? 20% $ 129,000 Division C 25 % 20 % 492,000The following info is provided for three operating divisions. The minimum accepted rate of return by the investor is 7%. Division M N P invested assets 14,000,000 86,000,000 840,000 Compute Return on Investment for: a. Division M type your answer... b. Division N type your answer... c. Division P type your answer... sales net income Compute Residual Income for: 25,000,000 112,000,000 1,750,000 d. Division M$ type your answer... e. Division N $ f. Division P$ type your answer... type your answer... 50,000,000 250,000,000 6,000,000 g. What division looks like the best division? type your answer...
- 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 %For its three investment centres, National Inc. accumulates the following data: Centre I Centre II Centre III Sales $2,000,000 $4,000,000 $4,000,000 Operating income 1,300,000 1,840,000 2,880,000 Average Operating Assets 5,000,000 8,000,000 12,000,000 Minimum required return 15% 20% 25% 1.) What is the return on investment (ROI) for Centre I? a. 20% b. 23% c. 24% d. 26% 2.)The residual income (RI) for Centre III is a. $150,000 b. $550,000 c. $240,000 d. -$120,000 3.)The ranking of the centres based on return on investment (ROI) with the best performer listed first is as follows a. Centre I, Centre II, Centre III b. Centre I, Centre III, Centre II c. Centre III, Centre II, Centre I d. Centre II, centre III, Centre I 4.)What is the return on investment (ROI) for Centre II? a. 20% b. 23% c. 24% d. 26%Hardin Company is a division of a major corporation. The following data are for the latest year ofoperations:Sales $ 19,600,000 Net operating income $ 470,400 Average operating assets $ 5,000,000 The company's minimum required rate of return 10 % Required:a. What is the division's margin?b. What is the division's turnover?c. What is the division's return on investment (ROI)?d. What is the division's residual income?
