Jef Doyle is evaluating results for two separate business segments under his control. Selected financial information for each segment follows: Segment A Segment B Sales $100,000 $138,000 Net Operating Income (loss) 5,000 (2,000) Average Assets $200,000 $200,000 Calculate return on investment for Segment A. A. 0.5 B. -0.01 C. 0.025 D. 0.125 E. none of the above

Jef Doyle is evaluating results for two separate business segments under his control. Selected financial information for each segment follows: Segment A Segment B Sales $100,000 $138,000 Net Operating Income (loss) 5,000 (2,000) Average Assets $200,000 $200,000 Calculate return on investment for Segment A. A. 0.5 B. -0.01 C. 0.025 D. 0.125 E. none of the above

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 16E

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Deuk Seon have the following investment centers. Several items are missing from the following table of rate of return on investment and residual income. Determine the missing items, identifying each item by the appropriate letter. Department Invested Assets Income from Operations Rate of Return on Investment Min. Rate of Return Min. Amt. of Income from Operations Residual Income Taek (a) (b) (c) 16% P128,000 P10,000 Jung Hwan P850,000 P153,000 (d) 12% (e) (f) Sun woo P825,000 (g) 20% (h) (i) P24,000 Dong Ryong (j) P129,000 24% (k) P60,000 (l) (a) Determine the missing items, identifying each by number. (b) Which division is most profitable in terms of income from operations? (c) Which division is most profitable in terms of rate of return on investment?
Determining missing items in return and residual income computations Data for Uberto Company are presented in the following table of returns on investment and residual incomes: Invested Assets Income from Operations Return on Investment Minimum Return Minimum Acceptable Income from Operations Residual Income $780,000 $187,200 (a) 13% (b) (c) $490,000 (d) (e) (f) $53,900 $24,500 $350,000 (g) 14% (h) $38,500 (i) $260,000 $52,000 (j) 12% (k) (l) Determine the missing values, identified by the letters above. For all amounts, round to the nearest whole number. 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% f. fill in the blank 6% g. $fill in the blank 7 h. fill in the blank 8% i. $fill in the blank 9 j. fill in the blank 10% k.…
Determining Missing Items from Computations Data for the North, South, East and West divisions of Free Bird Company are as follows: Sales Income from Operations Invested Assets Return on Investment Profit Margin Investment Turnover North $860,000 (a) (b) 17.5% 7.0% (c) South (d) $51,300 (e) (f) 4.5% 3.8 East $1,020,000 (g) $680,000 15.0% (h) (i) West $1,120,000 $89,600 $560,000 (j) (k) (l) a. Determine the missing items, identifying each by the letters (a) through (l). If required, round percents and investment turnover to one decimal place. a. $ b. $ c. d. $ e. $ f. % g. $ h. % i. j. % k. % l. b. Determine the residual income for each division, assuming that the minimum acceptable rate of return established by management is 12%. Division Residual Income North Division $ South Division $ East Division $ West Division $…
Determining missing items in return and residual income computations Data for Uberto Company are presented in the following table of rates of return on investment and residual incomes: Invested Assets Income from Operations Return on Investment Minimum Return Minimum Acceptable Income from Operations Residual Income $980,000 $225,400 (a) 13% (b) (c) $600,000 (d) (e) (f) $72,000 $24,000 $320,000 (g) 14% (h) $35,200 (i) $240,000 $45,600 (j) 11% (k) (l) Determine the missing values, identified by the letters above. For all amounts, round to the nearest whole number.
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5. What is the total revenue of the reportable segments after considering the quantitative thresholds but without regard to aggregation criteria? * 5. Bilo-Bilo Company provided the following data for the current year: Segment Profit (Loss) 215,000 25,000 Revenue Assets 450,000 80,000 A 600,000 80,000 360,000 190,000 190,000 80,000 50,000 (35,000) (20,000) 10,000 (20,000) (25,000) 250,000 140,000 160,000 140,000 140,000 140,000 E F G 120,000 380,000 Others a. The "others" category included five operating segments, none of which has revenue or assets greater than P50,000 and none with an operating profit. b. Operating segments B and C produce very similar products and use very similar production processes, but serve different customer types and use quite different product distribution system. Segment B operates in a regulated environment while Segment C does not. c. Operating segments F and G have very similar products, production processes, product distribution systems, but they serve…
Determining missing items in return and residual income computations Data for Uberto Company are presented in the following table of rates of return on investment and residual incomes: Invested Assets Income from Operations Return on Investment Minimum Return Minimum Acceptable Income from Operations Residual Income $950,000 $228,000 (a) 13% (b) (c) $550,000 (d) (e) (f) $60,500 $27,500 $350,000 (g) 14% (h) $38,500 (i) $260,000 $52,000 (j) 12% (k) (l) Determine the missing values, identified by the letters above. For all amounts, round to the nearest whole number. 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% f. fill in the blank 6% g. $fill in the blank 7 h. fill in the blank 8% i. $fill in the blank 9 j. fill in the blank 10% k. $fill in the…
Presented below are four segments that have been identified by XYZ, Inc. TE Segments Total revenue Profit (Loss) Identifiable Assets A 1,800,000 200,000 (350,000) 20,000 30,000 6,000,000 6,000,000 1,500,000 3,000,000 B 4,000,000 600,000 C D 1,300,000 Identify the reportable segments under the quantitative thresholds of PFRS 8.
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Determining missing items in return and residual income computations Data are presented in the following table of returns on investment and residual incomes: Invested Assets Operating Income Return on Investment Minimum Return on Investment Minimum Acceptable Operating Income Residual Income $1,200,000 $198,000 (a)   12% (b)     (c)    $800,000 (d) (e)   (f)   $120,000 $40,000 $750,000 (g) 14% (h)   $90,000 (i)    $1,800,000 $441,000 (j)   15% (k)     (l)    Determine the missing items, identifying each item by the appropriate letter. Round your percentages to one decimal place. a. % b. $ c. $ d. $ e. % f. % g. $ h. % i. $ j. % k. $ l. $
Determining missing items in return and residual income computations Data are presented in the following table of returns on investment and residual incomes: Invested Assets Operating Income Return on Investment Minimum Return on Investment Minimum Acceptable Operating Income Residual Income $1,200,000 $198,000 (a)   12% (b)     (c)    $800,000 (d) (e)   (f)   $120,000 $40,000 $750,000 (g) 14% (h)   $90,000 (i)    $1,800,000 $441,000 (j)   15% (k)     (l)    Determine the missing items, identifying each item by the appropriate letter. Round your percentages to one decimal place. 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 % f. fill in the blank 6 % g. $fill in the blank 7 h. fill in the blank 8 % i. $fill in the blank 9 j. fill in the blank 10 % k. $fill in the blank 11 l. $fill in the…