A 1 Chapter 10: Applying Excel 2 3 Data 4 Sales 5 Net operating income 6 Average operating assets 7 Minumum required rate of return OI your formulas are correct, you should get the correct answers to the following questions. What is the ROI? esidual income B % Why is the residual income positive? $ 64,000,000 $ 7,680,000 $ 16,000,000 25% What is the residual income? (Negative amount should be indicated by a minus sign.)

Required Supply the missing information in the following table for Vernon Company. (Do not round intermediate calculations. Round "ROI" answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).)         Sales $369,600   ROI   % Operating assets     Operating income     Turnover 2.1   Residual income     Operating profit margin 14 % Desired rate of return 17 %

Referring to the spreadsheet graphic provided below; the optimal formula is terms of flexibility to calculate the projected sales result in cell C2 would be: B 1 Regions Previous sales Projected sales 2 East 120000 3 West 150000 4 North 135000 5 South 175000 6 =B2*G1 =b2*(1+$g$1) =b2*(1+g1) =g1*$b$2 + b2 D E Growth factor F G 7%

Required Supply the missing information in the following table for Rooney Company. (Do not round intermediate calculations. Round "ROI" answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).)

a Rance 0ortotal tSpendingjJariance The Walnut Division of Benton core hurdle rate isug9o. Calculate the return on investment Calculate the profit, nmargin ÇalculateThe invest ment turnover (alculate the residual income

= Required Supply the missing information in the following table for Zachary Company: Note: Do not round intermediate calculations. Round "ROI" answer to 2 decimal places. (i.e., 0.2345 shoule Sales ROI Operating assets Operating income Turnover Residual income Operating profit margin Desired rate of return $ 309,600 1.8 % 13 % 19%

A segment has the following data: Sales $790000 Variable expenses 345000 Fixed expenses 550000 What will be the incremental effect on net income if this segment is eliminated, assuming the fixed expenses will be allocated to profitable segments? $345000 increase $445000 decrease Cannot be determined from the data provided $5750 decrease

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Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 255,000 178,500 76,500 107,000 (30,500) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated?

Determining missing items in return on investment computation One item is omitted from each of the following computations of the return on investment: Return on Investment = Profit Margin x Investment Turnover 27 %   = 10 %   x (a)   (b)   = 16 %   x 0.75   24 %   = (c)   x 1.5   14 %   = 20 %   x (d)   (e)   = 15 %   x 1.8   Determine the missing items identified by the letters as shown above. If required, round your answers to two decimal places. (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 %