ROI, RI, EVA. Performance Auto Company operates a new car division (that sells high- performance sports cars) and a performance parts division (that sells performance-improvement parts for family cars). Some division financial measures for 2017 are as follows: Home Page Layout Data Formulas Insert New Car Division Performance Parts Division 2 Total assets 3 Current liabilities 4 Operating income 5 Required rate of retun $33,000,000 $ 6,600,000 $ 2,475,000 12% $28,500,000 $ 8,400,000 $ 2,565,000 12%
Q: Required: Compute the materials price and quantity variances for the month. EXERCISE 10-8 Direct Mat...
A: Variance: When the actual cost is different from the standard cost, it is called variance. If the ac...
Q: What do you mean by Days Payable Outstanding (DPO)?
A: Definition: Accounts payable: This is the amount owed for the suppliers, or expenses incurred. Thi...
Q: Ballantine Corp. produces and sells lead crystal glassware. The firm consists of two divisions, Comm...
A: Whether the top management of B Corporation wants the C division to accept the offer and calculate t...
Q: Exercise A3-18Present Values Use Present Value Tables or your calculator to complete the requirement...
A: 1a.
Q: How does ‘Nature of business’ affect the value of goodwill of a firm ?
A: One of the factors that affect the goodwill value is the nature of business. If a firm is having con...
Q: What is the difference between accounts payable and accounts receivable?
A: Credit Transaction: Under a credit transaction, the exchange of goods or services takes place whe...
Q: When an owner of a proprietary business withdraws cash from the business for personal use, how would...
A: When cash is withdrawn from the business for personal use there will be a credit entry in the cash a...
Q: Calculator Addison, Inc. uses a perpetual inventory system. The following is information about one i...
A: Formulas:
Q: Describe three criteria you would use to evaluate whether a management control system is effective.
A: An effective management control system ensures that all the controls are in place and is applicable ...
Q: Describe at least two differences between U.S. GAAP and IFRS in balance sheet presentation.
A: Balance sheet: This financial statement reports a company’s resources (assets) and claims of credito...
Q: The Croydon division of CC Industries supplies the Hauser division with 100,000 units per month of a...
A: Transfer pricing: Transfer pricing refers to a process of pricing in which one sub-unit of an orga...
Q: Why is it important to adopt a consistent basis for the preparation of financial statements? Explain...
A: Definition: Financial statements: Financial statements are condensed summary of transactions commu...
Q: At the end of the current year, Accounts Receivable has a balance of $90,000; Allowance for Doubtful...
A: a) The amount of the adjusting entry for uncollectible accounts are ($300,000 x 2.5%) $7,500.00
Q: The management accountant at L & P Merchandising & More, Michael Stona, is in theprocess of ...
A: Since you have posted questions with multiple parts, we will solve the first 2 questions for you. To...
Q: An account becomes uncollectible Oa. There is no general rule for when an account becomes uncollecti...
A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short perio...
Q: Lowery Co. uses the direct write-off method of accounting for uncollectible accounts receivable. Low...
A: Option c is the correct option.
Q: Himanshu withdrews Rs. 2,500 at the end Month of each month. The Partnership deed provides for charg...
A: Here, amount is with drawn at the end of the month. So, formula for calculating interest on drawings...
Q: Ch. 8 Expected Cash Disbursements Question Please solve and explain the following problem with formu...
A: Formula for: February cash disbursement = (75% of February purchase) + (25% of January purchase)
Q: Explain briefly any four objectives of ‘Analysis of Financial Statements’
A:
Q: Malibu Corporation has monthly fixed costs of $192,000. It sells 2 products for which it has provide...
A: A) In order to find out Breakeven sales for relative mix of 40% for product 1 and 60% for product 2,...
Q: A company has total assets of $100,000. Its non-current assets are worth $60,000 and prepaid expense...
A: Current Assets: Current assets are those assets that can be converted to cash, or used in the busine...
Q: what are the 3rd and 4th steps to a master budget? Are there formulas that go with these steps?
A: Master Budget: The master budget is the core budget that explains the complete process of the budget...
Q: Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phone...
A: FIFO Method: FIFO is stands for First-in, first-out. Under this method, the oldest costs will be t...
Q: 6. A company budgets to sell 600 units of product F at a sales price of N30. The standard füll cost ...
A: A sales variance is the difference between actual and budgeted sales. It is used to analyze changes ...
Q: Income Statement, Statement of Owner's Equity and Balance Sheet Instructions Amount Descr...
A: Financial statements: Financial statements are prepared to summaries the account at the end of th...
Q: Required information [The following information applies to the questions displayed below.] Top Sound...
A: Contingent liability: This is an uncertain obligation which might be incurred on a future date as a ...
Q: Saloni and Srishti are partners in a firm. Their capital accounts as onApril 01. 2016 showed a balan...
A:
Q: What are the controlling interest percentage for a business combination tax return?
A: When a shareholder, or a group persons, holds a majority of a company's voting rights are called as ...
Q: Quick Stop operates 1,000 convenience stores throughout the United States. The company’s slogan is “...
A: Management Control System: The management control system is a system made to collect information an...
Q: Calculate the contribution margin per direct-labor hour of selling Xcel-chip and Dcel-chip. If no tr...
A: Following are the calculation of contribution margin per labor hour for X:
Q: The following inventory information is gathered from the accounting records of Tucker Enterprises: ...
A: In FIFO method, the goods received first are dispatched first, so ending inventory is the latest inv...
Q: reight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b)...
A: a. Computation is represented as below: Hence, the amount to be paid in full settlement is $75,250....
Q: 6-8
A: Definition: Cost-volume profit analysis: CVP analysis is a tool of cost accounting that measures t...
Q: The cash account for American Medical Co. at April 30 indicated a balance of $84,457. The bank state...
A: Formulas:
Q: PART A: Use the following information to prepare a budgeted balance sheet for Grover Company for ...
A: The budgeted Balance sheet is a balance sheet prepared on management budgets. Please find the balanc...
Q: On December 31, 2020, Berclair Inc. had 500 million shares of common stock and 20 million shares of ...
A:
Q: 1. What are the key cost categories in the traditional view?
A: Traditional view is the type of costing wherein the allocation of factory overheads is done based on...
Q: (a) The ratio of current Assets (Rs. 600000) to current Liabilities ( Rs.400000) is 1.5:1.The Accoun...
A: a. Current Ratio after making payment of x is 2:1 Therefore, Current Liabilities paid off Rs. 2,00,...
Q: Calculator Entries are made to the petty cash account when Oa. replenishing the petty cash fund Ob. ...
A: Petty cash account is opened to meet daily routine expenses which are very small.
Q: Kansas City Castings (KCC) is attempting to obtain the maximum loan possible using accounts receivab...
A: a. Calculate the accounts that will be acceptable and calculate the total dollar amount of accounts ...
Q: . Refresh Resorts, Inc., operates health spas in Key West, Florida; Phoenix, Arizona; and Carmel, Ca...
A:
Q: In performing accounting services for small businesses, you encounter the following situations perta...
A: The amount of sales tax is collected from the buyers and are paid to the government accounts for edu...
Q: The sales, gross profit, and direct and indirect operating expenses of Departments A and B of Cardob...
A: Direct Operating margin of a department helps in the evaluation of the level of income available for...
Q: Suppose division A quoted a transfer price of $110 for up to 800 units. What would be the contributi...
A: Transfer Price, when used internally, should take the following considerations: 1. The idle capacity...
Q: On June 30, 2022, Making Waves, LLC, purchased land for $400,000 and a building for $560,000, paying...
A: Journal entry of first installment paid on December 31 is : Date Accounts title and explanatio...
Q: What is a contingent liability?
A: Liabilities are legitimately restricting commitments that are payable to someone else. In accounting...
Q: Develop an amortization schedule for the loan described. (Round your answers to the nearest cent.) $...
A: Rate of interest 12% for one year and 3% for quarterly Hence R = 3% No.of periods = 4
Q: Which of the following is not a part of the winding up process? Group of answer choices Discharge o...
A: The correct answer is the third option that is, closing the partnership's business as it is not a pa...
Q: In January, gross earnings in Concord Company totaled $88,000. All earnings are subject to 7.65% FIC...
A: Formulas:
Performance Auto Company, whose tax rate is 40%, has two sources of funds: long-term debt with a market value of $18,000,000 at an interest rate of 10% and equity capital with a market value of $12,000,000 and a
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Zachary Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. ZACHARY TRANSPORT COMPANY West Division Income Statement for Year 3 Revenue $ 690,000 (540,000) (69,000) (89,000) (59,000) (149,000) Salaries for drivers Fuel expenses Insurance Division-level facility-sustaining costs Companywide facility-sustaining costs Net loss $(216,000) Required a. By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? b. Assume that West Division is able to increase its revenue to $780,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income if the segment were eliminated. Should West Division be eliminated if revenue were $780,000? c. What is the minimurn amount of revenue required to justify continuing the operation of West Division? Complete this question by entering your answers in the tabs below.…The vice president of operations of Moab Bike Company is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year ending October 31, 20Y9, for each division are as follows: (P14-5) Touring Bike Division Trail Bike Division Sales $1,500,000 $5,00 Cost of goods sold Operating expenses Invested assets 900,000 4,000,000 495,000 968,000 750,000 3,600,000 Instructions 1. Prepare condensed divisional income statements for the year ended October 31, 20Y9, assuming that there were no service department charges. Touting Bike Division Trial Bike DivisionVernon transport company divides its operations into four divisions. A recent statement for its West Division folows Vernon Transport Comapny Wesy division Income Statement for year 3 Revenue $670,000 Salaries for drivers (520,000) Fuel expenses (67,000) Insurance (87,000) Division-level facility- sustaining costs (57,000) Companywide facility-sustaining costs (147,000) Net loss $208,000 Required a) By how much would cormpanywide income increase or decrease if West Division is estimated? Should West Division be eliminated? b) assume that West Division is able to increase its revenue to $760,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income if the segemnt were eliminated. Should West Division be eliminated if revenue were $760,000? c) What is the mininum amount of revenue required to Jusify continuing the operation of West Divison? Complete this question by entering your answer in the table below. Income Would…
- Crane, Inc. has three divisions: Bud, Wise, and Er. The results of operations for May, 2022 are presented below. Units sold Revenue Less variable costs Less direct fixed costs Less allocated fixed costs Net income Bud 2,700 $63,000 28,800 12,600 5,400 $16,200 Wise 4,500 $45,000 23,400 17,100 9,000 $(4,500) Er 1,800 $36,000 14,400 10,800 3,600 $7,200 Total 9,000 $144,000 66,600 40,500 18,000 $18,900 All of the allocated costs will continue even if a division is discontinued. Crane allocates indirect fixed costs based on the number of units to be sold. Since the Wise division has a net loss, Crane is concerned that it should be discontinued. Crane thinks that if the division is closed, that sales at the Bud division will increase by 12% while sales at the Er division will stay the same.! Required information [The following information applies to the questions displayed below.] ACME Food Manufacturing reports the following for two of its divisions for a recent year. ($ millions) Beverage Division Cheese Division Invested assets, beginning Invested assets, ending $2,675 2,599 2,687 $4,468 4,406 3,931 Sales Operating income 355 640 1. Compute return on investment. 2. Compute profit margin. 3. Compute investment turnover for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute investment turnover for the year. (Enter your answers in millions.) Investment Turnover Choose Numerator: Choose Denominator: Investment Turnover %3D Investment Center Investment turnover %3D Beverage Cheese %3DRequired information [The following information applies to the questions displayed below.] ACME Food Manufacturing reports the following for two of its divisions for a recent year. Cheese ($ millions) Beverage Division Division Invested assets, beginning Invested assets, ending $2,675 2,599 2,687 $4,468 4,406 3,931 Sales Operating income 355 640 1. Compute return on investment. 2. Compute profit margin. 3. Compute investment turnover for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute profit margin. (Enter your answers in millions.) Profit Margin Choose Numerator: Choose Denominator: Profit Margin %3D Investment Center Profit margin %3D Beverage Cheese %D
- Rundle Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. RUNDLE TRANSPORT COMPANY West Division Income Statement for Year 3 Revenue $ 620,000 Salaries for drivers (470,000 ) Fuel expenses (62,000 ) Insurance (82,000 ) Division-level facility-sustaining costs (52,000 ) Companywide facility-sustaining costs (142,000 ) Net loss $ (188,000 ) Required By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? Assume that West Division is able to increase its revenue to $690,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income if the segment were eliminated. Should West Division be eliminated if revenue were $690,000? What is the minimum amount of revenue required to justify continuing the operation of West Division?(J) Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division ADivision BDivision CSales$ 12,120,000$ 28,120,000$ 20,120,000Average operating assets$ 3,030,000$ 7,030,000$ 5,030,000Net operating income$ 496,920$ 449,920$ 503,000Minimum required rate of return7.00%7.50%10.00%Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity. Lead LLC has three production departments and four service departments. The expenses for these departments are as follows: Production Departments Amount (RO) B121 5,000,000 C121 3,000,000 D121 2,000,000 Total Amount 10,000,000 Service Departments Amount (RO) Stores 200,000 Time keeping & accounts 100,000 Power 300,000 Canteen 400,000 Total Amount 1,000,000 The following information is also available in respect of the production departments: Particulars Department A Department B Department C Horse power of machine 200 100 300 Number of workers 10 8 7 Value of stores requisition (RO) 100,000 75,000 25,000 Apportion the cost of service department over the production departments.
- Arlington Clothing, Inc., shows the following information for its two divisions for year 1. Lake Region Coastal Region Sales revenue $ 4,160,000 $ 13,070,000 Cost of sales 2,691,300 6,535,000 Allocated corporate overhead 249,600 784,200 Other general and administration 553,900 3,755,000 Required: a. Compute divisional operating income for the two divisions. Ignore taxes. b-1. What are the gross margin and operating margin percentages for both divisions? b-2. How well have these divisions performed?Required information [The following information applies to the questions displayed below.] ACME Food Manufacturing reports the following for two of its divisions for a recent year. ($ millions) Beverage Division Cheese Division Invested assets, beginning Invested assets, ending $2,675 2,599 2,687 $4,468 4,406 3,931 Sales Operating income 355 640 1. Compute return on investment. 2. Compute profit margin. 3. Compute investment turnover for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment. (Enter your answers in millions.) Return on Investment Choose Numerator: Choose Denominator: Return on lInvestment Investment Center Return on investment %3D Beverage Cheese II IIHello, I only need Req B. Dudley Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. DUDLEY TRANSPORT COMPANY West Division Income Statement for Year 3 Revenue $ 300,000 Salaries for drivers (210,000 ) Fuel expenses (30,000 ) Insurance (42,000 ) Division-level facility-sustaining costs (24,000 ) Companywide facility-sustaining costs (78,000 ) Net loss $ (84,000 ) Required By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? Assume that West Division is able to increase its revenue to $324,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income if the segment were eliminated. Should West Division be eliminated if revenue were $324,000? What is the minimum amount of revenue required to justify continuing the operation of West Division?