Banderas, Inc. has three investment centers, Red, Brown, and Black. The following data is available for each of these investment centers. BANDERAS, INC. DATA FOR INVESTMENT CENTERS OF COMPANY Red Brown Black Operating Income $ A $ E $ Sales Revenue B 1,000,000 I 1,500,000 Average Investment in Assets 300,000 500,000 J Profit Margin Ratio C 15% 10% Asset Turnover Ratio 4 F K Return on Investment (ROI) 25% G 25% Minimum Required Rate of Return 20% H L Residual Income D 50,000 30,000 REQUIRED: Using the attached answer sheets, compute the missing items A through L for Banderas, Inc. Round all percentages to two decimal places (four decimal places in all), all dollar amounts to the nearest whole dollar, and all other amounts to two decimal places.

If National Co. treats the AB Division as an investment center for performance measurement purposes, what is the before-tax ROI for last year?     22.54% 16.67% 19.79% 34.78%

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?

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. Division A Division B Division C $ Sales revenue ? ? 12,000,000 $ $ Income Average investment ? 450,000 2,190,000 $ ? ? 2,700,000 Sales margin 40% ? 45% Capital turnover 2 ? ? ROI ? ? 20% $ Residual income ? ? 133,000 PR 13-37 (Algo) ROI and Residual Income; Missing Data (LO 13-2) Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 6 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue $ 40,800,000 Income $ 1,710,000 $ 8,160,000 Average investment 10,200,000 Sales margin 18 % 1.00 % 20% Capital turnover ROI Residual income % % 18 % $ 501,000

A-1. Evaluate the performance of the two divisions assuming BMI users return on investment (ROI). A-2. Which division had the better performance?

Selected financial data for the Photocopies Division of Elizabeth's Business Machines is as follows: Sales $8,200,000 Operating income $2,788,000 Total assets $3,280,000 Current liabilities $400,000 Required rate of return 14% Weighted average cost of capital 3% What is the Photocopier Division's residual income?   Question 16 options:   $459,200   $2,328,800   $3,247,200   $2,689,600

Required information [The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. Investment Center Electronics Income $ 3,114,000 2,261,000 Average Assets $ 17,300,000 13,300,000 Sporting goods Sales $ 41,520,000 18,088,000 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated the most residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? The target return is 11%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment for each center. Using return on investment, which center is most efficient…

go.4

Data on three unrelated companies are given in the following table. Comfy Inn Hamton Inn Night Inn Revenue $1,200,000 $3,185,000 Operating income $240,000 $210,000 Total assets $1,000,000 ? Profit margin ? 15% 18% Asset turnover 0.7 27% Return on investment (ROI) 20% 8.0% Target rate of return ? $150,000 Residual income a) Calculate each of the missing values. b) Comment on each company's performance in relation to the others.

What is the investment turnover?