Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z Sales $ 1,416,000 $ 831,000 $ 5,294,000 Operating Income 197,400 102,700 275,600 Investment in assets 380,600 498,600 3,618,400 The return on sales (ROS) for Division X is: (Round your percentages to one decimal place.)
Q: Agustin Industries is a division of a major corporation. Data concerning the most recent year…
A: Division margin is the kind of indicator used by companies to indicate the profitability of the…
Q: Compute the residual income for each division. North Division West Division South Division SA $…
A: RETURN ON INVESTMENTReturn on investment is one of the profitability ratios which shows how much…
Q: Meiji Isetan Corporation of Japan has two regional divisions with headquarters in Osaka and…
A: Net operating income : Net operating income is commonly used concept which can be used by companies…
Q: a. Compute the rate of return on investment for each division. b. Which division is the most…
A: Rate of return on investment is the percentage of returns earned on the invested amount. It is…
Q: a. Based on the data above, compute the ROI for the Eastern Division and the Western Division.…
A: Solution Note : Dear student as per the Q&A guideline we are required to answer the first three…
Q: Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z…
A: The objective of the question is to calculate the asset turnover (AT) for Division Y. Asset turnover…
Q: der the following data and determine w Domestic erating income $ 8,000,000 erage total assets…
A: The formula to calculate return on Investment is: Return on Investment = Operating Income/ Average…
Q: Return on investment The operating income and the amount of invested assets in each division of…
A: Return on investment means percentage of profit on the basis of amount invested in business. It can…
Q: The sales, income from operations, and invested assets for each division of Wren Company are as…
A: Residual income is calculated by deducting the multiplication of the minimum rate of return and…
Q: 2. Using the DuPont formula for return on investment, determine the profit margin, investment…
A: Business Division Consumer Division (2.) Average Invested Assets $3,42,40,000…
Q: Division A's asset turnover (AT) is (rounded to two decimal places):
A: Given that , Sales = $490000 Average investment = $416500 Operating income = $ 83300
Q: Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama.…
A: Return on Investment (ROI) refers to the return that the investors receive if invested in a certain…
Q: Warren Company has a hurdle rate of 11.2%. a. Calculate the return on investment for each division.…
A: a)Calculation of return on investments as follows under:-
Q: A company's division has sales of $2,530,000, income of $759,000, and everage assets of $2,300,000.…
A: Ratio analysis helps to analyze the financial statements of the company. The management can take…
Q: Provide the missing information (A-H) in the table. Use the formulas learned in Chapter 10. (Round…
A: The margin ratio - is one of the ratios that measure profitability of the entity. It compares the…
Q: The sales, income from operations, and invested assets for each division of Wren Company are as…
A: Residual Income is a performance measurement approach to assess how effectively the invested capital…
Q: Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z…
A: Operating income for division Y (O) = $108200 Investment for division Y (I) = $764100
Q: The following data are for the Akron Division of Consolidated Rubber, Incorporated: Sales Net…
A: Turnover reflects the no of times, the business is able to make sales of its average capital…
Q: The income from operations and the amount of invested assets in each division of Beck Industries are…
A: Return on investment (ROI): This financial ratio evaluates how efficiently the assets are used in…
Q: The operating income and the amount of invested assets in each division of Conley Industries are as…
A: Return on Investment: Return on investment is simply refers to the the ratio between net income and…
Q: The sales, income from operations, and invested assets for each division of Grosbeak Company are as…
A: RATIO ANALYSIS- IT IS A QUANTITATIVE METHOD OF GAINING INSIGHT IN TO COMPANYS LIQUIDITY,OPERATIONAL…
Q: operating assets ting income required rate of return. Division A $ 12,600,000 $ 3,150,000 $ 516,600…
A: Return on investment (ROI) is a performance statistic used to evaluate the efficiency or…
Q: The operating income and the amount of invested assets in each division of Conley Industries are as…
A: Solution:-a Computation of the return on investment for each division a follows:-
Q: The following data relates to the ABC Corporation and its A Division.…
A: Economic value added is one of the performance of the business. It shows how much operating profits…
Q: elected sales and operating data for three divisions of different structural engineering firms are…
A: Solution : Return on investment is percentage return earned on average operating assets of the…
Q: Using the data below for the Ace Guitar Company: A Region B Region Sales $607,500 $742,500 Cost of…
A: Detailed explanation:The divisional operating revenue for the Ace Guitar Company's A and B regions…
Q: Provide the missing data in the following table: (Round "Turnover" answers to 1 decimal place.)…
A: Financial ratios are a way for a company to evaluate its financial position. These ratios assist in…
Q: The income from operations and the amount of invested assets in each division of Shiner Industries…
A:
Q: The sales, income from operations, and invested assets for each division of Grosbeak Company are as…
A: SOLUTION- RATIO ANALYSIS- IT IS A QUANTITATIVE METHOD OF GAINING INSIGHT IN TO COMPANYS…
Q: Dacker Products is a division of a major corporation. The following data are for the most recent…
A: We can calculate the division's margin that is use to compute ROI using the formula for margin, we…
Q: 1. Prepare condensed divisional income statements for the three divisions, assuming that there were…
A: Profit margin means where profit is divided with sales and percentage is found out. Investment…
Q: Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.01…
A: Return on investment is the measurement of the performance of the investment. 1 Return on investment…
Q: Using the data below for the Ace Guitar Company: A Region B Region Sales $638,000 $522,000…
A: Divisional income statement of the business shows all income pertaining to division and all expenses…
Q: Terra Company has two divisions, the Retail Division and the Wholesale Division. The following…
A: Return on Investment: Return on investment, often known as ROI, is a mathematical formula that…
Q: The sales, income from operations, and invested assets for each division of Wren Company are as…
A: Residual Income = Income from Operations - Invested Assets x Minimum rate of return Residual Income…
Q: and West divisions of Free Bird Company are as follows: Sales Operating Income Invested Return on…
A: ROI means return on investment. It is measure which helps to determine the percentage of profits…
Q: Sales Operating Income Invested Assets Division C $4,000,000 $410,000 $3,500,000 Division D…
A: Residual income can be calculated from the cost of operating assets.
Q: 4,500,000 795,000 2,400,000 Division C Division D 6,800,000 795,000 2,700,000 Required: (a) Using…
A: Profit margin is the margin earned on sales of the business. Investment turnover shows ratio of…
Q: Adams Cough Drops operates two divisions. The following information pertains to each division for…
A: Residual income is the remaining income after distributing the profits to the shareholders. The…
Q: Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z…
A: Introduction:- The following formula used to calculate return on sales as follows under:- Return on…
Q: company has the following information available for three of its divisions. COMPANY INFORMATION FOR…
A: Sales Revenue Is Calculated By Dividing The Net Operating Income With The Profit Margin Ratio.Sales…
Q: 4. The income from operations and the amount of invested assets in each division of Beck Industries…
A: Return on invetsment = Income from operations / Invested Assets
Q: Using the data below for the Ace Guitar Company: Sales Cost of goods sold. Selling expenses Support…
A: Income statement: Income statement is the financial statement which shows the financial performance…
Q: The return on sales (ROS) for Division Y is:
A: Return of sale = Operating Profit / Revenue
Q: Far Sight is a division of a major corporation. The following data are for the latest year of…
A: A. The return on investment is usually expressed as a percentage. ... You may calculate the return…
Consider the following data for three divisions of a company, X, Y, and Z:
Divisional: | X | Y | Z |
---|---|---|---|
Sales | $ 1,416,000 | $ 831,000 | $ 5,294,000 |
Operating Income | 197,400 | 102,700 | 275,600 |
Investment in assets | 380,600 | 498,600 | 3,618,400 |
The return on sales (ROS) for Division X is: (Round your percentages to one decimal place.)
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- ROI is effective because it takes into consideration the three factors under the control of an investment center manager: revenues, costs, and investments. ROI measures the income (or return) earned on each dollar of investment. APPLY THE CONCEPTS: Calculating return on investment The divisional income statements for three divisions of the McLaren Company are shown. McLaren Company Divisional Income Statements For the Year Ending December 31, 2012 Division A Division B Division C Sales Revenue $1,947,000 $1,197,000 $594,000 Operating expenses (1,148,730) (897,750) (314,820) Operating income before service department charges $798,270 $299,250 $279,180 Service department charges (467,280) (177,156) (166,320) Operating income $330,990 $122,094 $112,860 Additional financial data from the three divisions of the McLaren Company are shown. Division A Division B Division C Invested assets $1,100,000 $665,000 $450,000 Calculate the return on investment for each division. If required, round the…HarderMeiji Isetan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 9,600,000 $ 26,000,000 Net operating income $ 672,000 $ 2,340,000 Average operating assets $ 3,200,000 $ 13,000,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 16%. Compute the residual income for each division. 3. Is Yokohama’s greater amount of residual income an indication that it is better managed?
- answer in text form please (without image)Using the data below for the Ace Guitar Company: A Region B Region Sales $521,500 $968,500 Cost of goods sold 198,200 368,000 Selling expenses 125,200 232,400 Service department expenses Purchasing $250,300 Payroll accounting 166,900 Allocate service department expenses proportional to the sales of each region. Determine the divisional income from operations for the A and B regions. For interim calculations, round percentages to one decimal place. A Region $ B Region $A company's division has sales of $2,610,000, income of $991,800, and average assets of $1,800,000. Compute the division's profit margin, return on investment, and investment turnover. Compute the Division's Profit Margin. Numerator: Denominator: Profit Margin Profit margin Compute the Division's Return on investment. Numerator: Denominator: Return on investment Return on investment Compute the Division's Investment Turnover. Numerator: Denominator: Investment Turnover %3D Investment turnover
- Selected sales and operating data for three divisions of different structural engineering firms are given below: Division C $ 25,450,000 $ 5,090,000 $636,250 12.50% Sales Average operating assets Net operating income Minimum required rate of return Division A $ 12,360,000 $ 3,090,000 $ 494,400 7.00% Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Compute each division's residual income (loss). 3. Assume each division is presented with an investment opportunity yielding a 8% rate of return. a. If performance is being measured by ROI, which division or divisions will accept the opportunity? b. If performance is being measured by residual income, which division or divisions will accept the opportunity? Division B $ 28,360,000 $ 7,090,000 $ 453,760 7.50% Complete this question by entering your answers in the tabs below. Division A Division B Division C Required 1 Required 2 Required 3A Required 3B Assume each division is presented with an…Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the two divisions for the current year: Operating income Operating assets Retail Division $ 7,200,000 $37,200,000 Wholesale Division $ 3,700,000 $17,200,000 Assuming that these are the only divisions of Terra Company, what is the ROI for the company as a whole?Meiji Isetan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 9,800,000 $ 28,000,000 Net operating income $ 588,000 $ 2,240,000 Average operating assets $ 2,450,000 $ 14,000,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 14%. Compute the residual income for each division. 3. Is Yokohama’s greater amount of residual income an indication that it is better managed? Osaka Yokohama ROI % % Osaka Yokohama Residual income
- The sales, income from operations, and invested assets for each division of Jackson Corporation are as follows: Sales Income from Operations Invested Assets Division E $4,000,000 $550,000 $2,400,000 Division F 4,800,000 760,000 2,500,000 Division G 7,000,000 860,000 2,800,000 (a) Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. Round answers to one decimal place. (b) Which Division is the most profitable per dollar invested? (a) (b)Q35 Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z Sales $ 1,483,000 $ 805,000 $ 5,005,000 Operating Income 216,100 59,700 263,800 Investment in assets 625,600 292,500 3,179,600 The return on sales (ROS) for Division Z is: (Round your percentages to one decimal place.) Multiple Choice 7.4%. 8.3%. 5.3%. 14.6%. 20.4%.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%