FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Pine Corp. has revenues of $520,000 resulting in an operating income of $66,560. Invested assets total $611,000. Residual income is $24,000. Calculate the new residual income if sales increase by 10% and the profit margin and invested assets remain the same. (Do not round your intermediate calculations.) A $0 B $30,656 C $42,560 D $10,496arrow_forwardget answerarrow_forwardRequired information Skip to question [The following information applies to the questions displayed below.] King Mattresses sells both mattress sets and bed frames. Last quarter, total sales were $70,000 for mattress sets and $45,000 for bed frames. Return on investment (ROI) was 15% for both divisions, while asset turnover (AT) was 3 for mattress sets and 3 for bed frames. Compute King Mattresses’s total return on sales (ROS) for the quarter.arrow_forward
- The following are financial data taken from the annual report of Foundotos Company: Year 2 $134,448 51,981 37,154 57,504 Net sales Gross property, plant and equipment Accumulated depreciation Intangible assets (net) A. Calculate the following ratios for Year 1 and Year 2: 1. Fixed asset turnover 2. Accumulated depreciation divided-by-gross fixed assets B. What do the trends in these ratios reveal about Foundotos? Year 1 $130,060 47,744 34,180 36,276arrow_forwardBelow is financial information for the last year for a company that has a number of fast-food stores: Revenue from operations: $10,450,200 9,927,690 Operating costs: Cost of capital: RRR: 12% 15% Average assets: $4,180,080 Required: Calculate several measures that can be used for the financial perspective of a BSC.arrow_forwardSaharrow_forward
- Comparative data on three companies in the same service industry are given below: Required: 2. Fill in the missing information. (Round the "Turnover" and "ROI" answers to 2 decimal places.) A B C Sales $5,267,000 $1,630,000 Net Operaring Income $737,380 $260,800 Average operating assets $2,290,000 $2,570,000 Margin 6% Turnover 1.60 Return on Investment (ROI) 8%arrow_forwardSaved He Chevalier Company has identified five industry segments: plastics, metals, lumber, paper, and finance. t appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment (in thousands) follows: Accounts Sales to outside parties Intersegment sales Interest income from outside parties Interest income from intersegment loans Operating expenses Interest expense Tangible assets Intangible assets Intersegment loans (debt) Plastics $ 6,625 Metals $ 2,334 Lumber $ 701 Paper $ 412 Finance 146 169 134 146 $ 0 0 0 32 19 0 40 0 0 0 0 197 4,174 74 1,742 1,046 644 29 29 64 30 100 1,467 85 0 3,176 504 751 169 399 0 0 61 0 0 0 702 Chevalier does not allocate its $1,480,000 in common expenses to the various segments. Required: a1. Perform revenue test procedure to determine Chevalier's reportable operating segments. a2. Perform profit or loss test procedure to determine Chevalier's reportable operating segments. a3. Perform…arrow_forward
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