A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Loss amounts should be indicated by a minys sign. Round your percentage answers to nearest whole percent.) Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual me $ 9,030,000 $ 3,010,000 19 % 17% Company B $ 7,050,000 $ 282,000 $ 10 % 338,400 % C $ 4,545,000 $ 1,818,000 $ % 10 % 90,900

A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Loss amounts should be indicated by a minys sign. Round your percentage answers to nearest whole percent.) Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual me $ 9,030,000 $ 3,010,000 19 % 17% Company B $ 7,050,000 $ 282,000 $ 10 % 338,400 % C $ 4,545,000 $ 1,818,000 $ % 10 % 90,900

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 5PA: Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an...

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Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. A. In the correct format, prepare the income statement using the following information: B. Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital. C. Prepare a short response to accompany the income statement that explains why uncontrollable costs are included in the income statement.
A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Loss amounts should be indicated by a minus sign. Round your percentage answers to nearest whole percent and other amounts to whole dollars.) Company A C Sales $ 340,000 $ 760,000 $ 650,000 Net operating income $ 40,000 Average operating assets $ 164,000 $ 159,000 Return on investment (ROI) 21 % 18 % % Minimum required rate of return: Percentage 18 % % 10 % Dollar amount $ 57,000 Residual income $ 5,000 %24
A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry Supply the missing data in the table below: (Loss amounts should be indicated by a minus sign. Round your percentage answers to nearest whole percent and other amounts to whole dollars.) Company B 730,000 38,000 Sales 340,000 24 530,000 Net operating income Average operating assets Return on investrment (ROI) 162,000 157,000 15 % 17 % Minimum required rate of return Percentage 17% 10 % Dollar amount. 51,000 Residual income 7,000
Profit Margin, Investment Turnover, and ROI Cash Company has income from operations of $19,754, invested assets of $83,000, and sales of $282,200. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin fill in the blank 1% b. Investment turnover fill in the blank 2 c. Return on investment fill in the blank 3%
Supply the missing data for three service companies shown in the table below: Note: Loss amounts should be indicated by a minus sign. Round your percentage answers to nearest whole percent. Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual income A Company B C $ 9,450,000 $ $ 7,750,000 329,000 $ 5,175,000 $ 3,150,000 $ 2,070,000 11 % 14 % % 9% $ 376,000 % 14 % $ 103,500
Direction: Read the following independent cases given below. Provide necessary answer for all issues being asked. Provide a separate answer sheet for all your specific answers. A. The DIGITAL Company provided you with the following comparative Income Statement for your analysis. He wants you to enlighten the management on why the net profit decline. Sales Cost of Sales Gross Margin Operating Expenses Net Profit 2020 P680,000 170,000 P510,000 210,000 P300000 2021 P 570,000 200,000 P 370,000 100,000 P 270.000 Required: 1. Using Horizontal Analysis, calculate the peso change and the percentage changes. 2. Using Vertical Analysis, prepare the comparative common-size Income Statements. 3. Evaluate the results of your Analysis and explain to the management why the net profit declined.
Fill in the blanks in the schedule below for two separate investment centers A and B. Note: Round your final answers to 1 decimal place. Investment Center Sales Income Average assets Profit margin Investment turnover Return on investment A + $ 240,000 $ 1,200,000 8.0% B $ 10,400,000 2.0 12.0%
(Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab or if you type the numbers in, you will be marked wrong.) Bayside Company Sales Operating income Total assets Sales margin Capital turnover Return on investment (ROI) Target rate of return Residual income (RI) Georgeville, Inc. $117,000 $35,100 $90,000 9% $164,000 20% 4.10 21% Blue Hat Industries $520,000 8% 20% $4,160
Calculate the missing values for each unique company. (Enter your ROI and Profit Margin percentage answers to one decimal place, (1.e., 0.123 should be entered as 12.3%). Round your Investment Turnover answers to 2 decimal places.) Profit Investment Turnover ROI Margin 8.8 % Company 1 Company 2 Company 3 Company 4 3.00 20.0 % 5.00 22.0 % 11.0 % 13.0 % 3.00
Castle Home Industries is looking to invest in either Company A, B, or C. Calculate the ROI and residual income for each company and based on the results, indicate which one is the best choice for Castle Home Industries. Show your calculations for full points. Company A. B. C Sales $3,600,000 $6,000,000 $1,500,000 Net Operating Income 120,000 220,000 90,000 Average Operating Assets 1,000,000 2,000,000 900,000 Minimum required rate of return: 14% 6% 10%
Assume that you are purchasing an investment and have decided to invest in a company in the digital phone business. You have narrowed the choice to Digitized Corp. and Very Network, Inc. and have assembled the following data. LOADING... (Click to view the income statement data.) Data Table Selected income statement data for the current year: Digitized Very Network Net Sales Revenue (all on credit) $418,290 $494,940 Cost of Goods Sold 210,000 256,000 Interest Expense 0 15,000 Net Income 62,000 70,000 (Click to view the balance sheet and market price data.) Data Table Selected balance sheet and market price data at the end of the current year: Digitized Very Network Current Assets: Cash $24,000 $21,000 Short-term Investments 42,000 19,000 Accounts Receivables, Net 36,000 46,000 Merchandise Inventory 67,000 98,000 Prepaid Expenses 22,000 18,000 Total…
You have been asked to make a presentation about an entertainment company. In your research, you locate the accompanying pie chart, which shows the company's revenue by segment expressed in millions of dollars. To enhance your presentation, you have decided to convert the dollar amounts to percents and display both numbers. 2.5 Segment Revenue ($ millions) 6.8 16.3 10.6 (a) What is the total revenue (in millions of dollars)? million % Media Networks Resorts Financial Products Retail Sales (b) What percent (rounded to the nearest tenth percent) does each segment contribute to the total revenue? media networks 45.4 X % resorts 29.9 X % retail sales 6.9 % financial products 18.84