Question Content Area Mason Corporation had $ 1,020,000 in invested assets, sales of $1, 217,000, operating income amounting to $217,000, and a desired minimum return on investment of 13%. The residual income for Mason Corporation is a. ($5,300) b $0 c. $84,400 d. $118, 160
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- What is the return on assets for a firm that has a gross profit of $1.2 million, an operating profit of $550 000, a net profit of $200 000, shortterm assets of $1 million, and longterm assets of $5 million? Question content area bottom Part 1 A. 9.2 percent B. 3.3 percent C. 4 percent D. 20 percentQ6 Selected data from Box Division's accounting records revealed the following: Sales $ 825,000 Average investment $ 440,000 Net operating income $ 66,000 Minimum rate of return (divisional cost of capital) 14% Box Division's asset turnover (AT) is calculated to be: (Round your answer to three decimal places.) Multiple Choice 4.270. 1.070. 1.875. 12.500. 1.625.Sousa Corporation provides the following financial information: Minimum acceptable operating income Average total assets Operating income $560,000 $2,000,000 $715,000 Return on investment 36% Net sales $850,000 Calculate the residual income of Sousa Corporation. O A. $554,125 O B. $155,000 OC. $290,000 O D. $1,440,000
- Question 13 Refer to the following financial information of Scholz Company: NOPAT 8,250,000.00 EBITDA 17,725,000.00 Net Income 5,050,000.00 Capital Expenditures 6,820,000.00 After tax capital costs 6,280,000.00 Tax rate 40% Calculate the Company's depreciation and amortization expenseFollowing data is given for XYZ company: Sales $114,000 Operating income Total assets $39,900 $71,250 Return on investment for XYZ company is: a. 21.875% b. 56% с. 100% d. 10%9 Florida Incorporated has sales revenue of $1,875,000 resulting in net operating income of $187,500. Average invested assets total $375,000, and the cost of capital is 19%. What is the investment turnover? Multiple Choice 10.00% 50.00% 0.20 5.00
- The following information is available on Company A: Sales Operating Income $900,000 $36,000 Shareholders' Equity Average Operating Assets $100,000 $180,000 Minimum Required Rate of Return 15% What is the fixed asset turnover for Company A? ○ 25 ○ 5 O 9 O2Sales $1,519,621 Operating Income $108,450 Total Assets (investment) $583,662 Target Rate of Return (Cost of Capital) 10% What is return on investment? Input your answer to 1 decimal place. For example if you calculate .1892 enter 18.9.The following data pertain to Dakota Division's most recent year of operations. $ 17,500,000 200,000,000 65,000,000 Income Sales revenue Average invested capital Assume that the company's minimum desired rate of return on invested capital is 12 percent. Required: Compute Dakota Division's residual income for the year. Residual income 20 CE FB F6 F9 F10 Prisc Inse F11 F12 & 3 6 9. R U F
- Capital Investments has two divisions. Each division's required rate of return is 10%. Planned operating results for 2020 are as follows: (Click the icon to view the planned operating results.) Read the requirements. Requirement a. What is the current ROI for each division? Begin by selecting the formula to calculate ROI, then compute the ROI for each division. Measure of income + Measure of investment = 12,350,000 95,000,000 56,000,000 10,640,000 Division A Division B Division A Division B Requirement b. What is the current residual income for each division? Begin by selecting the formula to calculate the residual income (RI), then compute the RI for each division. X ROI X 13 % 19 % % % )= RIINCOME STATEMENT Hermann Industries is forecasting the following income statement:Sales $8,000,000Operating costs excluding depr. & amort. 4,400,000EBITDA $3,600,000Depreciation & amortization 800,000EBIT $2,800,000Interest 600,000EBT $2,200,000Taxes (40%) 880,000Net income $1,320,000The CEO would like to see higher sales and a forecasted net income of $2,500,000. Assumethat operating costs (excluding depreciation and amortization) are 55% of sales and thatdepreciation and amortization and interest expenses will increase by 10%. The tax rate, whichis 40%, will remain the same. What level of sales would generate $2,500,000 in net income?Barrera Corporation provides the following financial information: Minimum acceptable operating income $556,600 Average total assets $2,000,000 Operating income $708,000 Return on investment 35.4% Net sales $800,000 Calculate the target rate of return. (Round your answer to two decimal places.) A. 69.58% B. 88.50% C. 27.83% D. 35.40%
