(a)Fill in the missing items (lettered A through R) for each of the three divisions. For ROI calculations, operating assets are considered investments. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round ROI to 2 decimal places, e.g.15.25%, profit margin to 1 decimal place, e.g. 15.2% and asset turnover to 4 decimal places, e.g. 15.2516.)SalesYour answer is partially correct.Operating incomeAfter-tax operating income $Operating assetsTotal assetsCurrent liabilitiesROIResidual incomeEVAProfit marginAsset turnovereTextbook and Media$$Industrial$125,000$9,0006660$80,000$100,000$5,000111000-94071.56A $% BсD% E$F$Technology376000$19,20014208142080$188,0004600010%0$2,8483.782G $HIK% L$$$Service11100021000$15,54045400106000$9,00048.44$11,000$7,78014.0%1.05MNP% QRSUPPOAssistance Used While reviewing last year's performance outcomes for comparison to this year, Jennifer finds several pieces are missing. Apparently, avirus attacked select components of the system's memory, and the back-up information was too difficult to extract from the file. Sheknows that all three divisions use the corporate tax rate (26%), minimum rate of return (10%), and WACC (8%) to determine theirrespective RI and EVA metrics. The following information reflects the components that Jennifer could identify for each of the threedivisions in the company.SalesOperating incomeAfter-tax operating incomeOperating assetsTotal assetsCurrent liabilitiesROIRIEVAProfit marginAsset turnoverIndustrial$125,000$9,000A$80,000$100,000$5,000BсDEFTechnologyG$19,200H1$188,000JK10%$2,848L2ServiceMN$15,540OP$9,000Q$11,000$7,78014.0%R

Profitability ratios provide insights into different aspects of a company's profitability. They can…

Answered: While reviewing last year's performance…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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While reviewing last year's performance outcomes for comparison to this year, Linda finds several pieces are missing. Apparently, a virus attacked select components of the system's memory, and the back-up information was too difficult to extract from the file. She knows that all three divisions use the corporate tax rate (26%), minimum rate of return (10%), and WACC (8 %) to determine their respective RI and EVA metrics. The following information reflects the components that Linda could identify for each of the three divisions in the company. Sales Operating income After-tax operating income Operating assets Total assets Current liabilities ROI RI EVA Profit margin Asset turnover Sales Operating income After-tax operating income Operating assets Total assets. Current liabilities ROI Residual income EVA Profit margin Asset turnover Show Transcribed Text $ $ Industrial $125,000 $9,000 $ A $80,000 $100,000 $5,000 B Ć D E F Industrial $125,000 $9.000 $80,000 $100.000 Technology G $16,800…
1. When the State of Delaware receives tax forms, it puts them through a computer program to flag forms that need to be investigated further. The computer looks for mistakes in the forms (example: addition mistakes or incorrect deduction amounts). Suppose the computer correctly flags 80% of all returns that have mistakes, and it incorrectly flags 5% of error-free returns. Further, suppose that 15% of all tax returns have errors. A tax return is flagged by the computer. What is the chance that it actually contains mistakes, given that the computer flagged it?
A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Loss amounts should be indicated by a minus sign. Round your percentage answers to nearest whole percent and other amounts to whole dollars.)
The accompanying data provides the results of a survey of 27 employees in a tax division of a Fortune 100 company. a. Test the null hypothesis that the average number of years of service is the same for males and females. Assume that the population variances are unequal. b. Test the null hypothesis that the average years of undergraduate study is the same for males and females. Assume that the population variances are unequal. Click the icon to view the survey data. a. Is there sufficient evidence at the 0.01 level of significance that the average number of years of service is the same for males and females? Determine the null hypothesis, Ho, and the alternative hypothesis, H₁. Let females be population 1 and males be population 2. Ho P-P2 H₁: P₁ - H = 0 (Type integers or decimals. Do not round.) Compute the test statistic. - 3.65 (Round to two decimal places as needed.) Find the p-value for the test. (Round to three decimal places as needed.)
The accompanying data provides the results of a survey of 27 employees in a tax division of a Fortune 100 company. a. Test the null hypothesis that the average number of years of service is the same for males and females. Assume that the population variances are unequal. b. Test the null hypothesis that the average years of undergraduate study is the same for males and females. Assume that the population variances are unequal Click the icon to view the survey data. a. Is there sufficient evidence at the 0.01 level of significance that the average number of years of service is the same for males and females? Determine the null hypothesis, H. and the alternative hypothesis. H Let females be population 1 and males be population 2 Ho H1 H2 = 0 HH-H # 0 (Type integers or decimals. Do not round.) Compute the test statistic (Round to two decimal places as needed.) Survey data Gender Years of Service Years Undergraduate Study Gender Years of Service Years Undergraduate Study Female 18 4 Male 6…
Krall Company recently had a computer malfunction and lost a portion of its accounting records. The company has reconstructed some of its financial performance measurements including components of the return on investment calculations.Required:Help Krall rebuild its information database by completing the following table: (Do not round your intermediate calculations. Round your final answers to 2 decimal places, (i.e. 0.1234 should be entered as 12.34%.).)
Krall Company recently had a computer malfunction and lost a portion of its accounting records. The company has reconstructed some of its financial performance measurements including components of the return on investment calculations. Required: Help Krall rebuild its information database by completing the following table: Note: Round your intermediate calculations to 2 decimal places. Round your final answers to 2 decimal places, (i.e. 0.1234 should be entered as 12.34%.). Return on Investment % % % 12.30 % Profit Margin % 10.70 % 15.10 % % Investment Turnover 0.36 1.25 2.60 Operating Income $ 52,000.00 $ 96,685.20 GA Sales Revenue Average Invested 701,000.00 $ $ 2,112,500.00 510,000.00 Assets 1,580,000.00 2,510,000.00
Krall Company recently had a computer malfunction and lost a portion of its accounting records. The company has reconstructed some of its financial performance measurements including components of the return on investment calculations. Required: Help Krall rebuild its information database by completing the following table: Note: Round your intermediate calculations to 2 decimal places. Round your final answers to 2 decimal places, (i.e. 0.1234 should be entered as 12.34%.). Return on Investment % % % 12.10 % Profit Margin 11.10 % 15.30 % Investment Turnover 0.45 1.30 2.65 Operating Income $ 35,000.00 $ 126,873.00 $ Sales Revenue 711,000.00 2,262,000.00 517,000.00 Average Invested Assets 1,480,000.00 2,540,000.00
The State Department of Taxation processes and audits income-tax returns for state residents. The state tax commissioner has recently begun a program of work measurement to help in estimating the costs of running the department. The independent variable used in the program is the number of returns processed. The analysis revealed that the following variable costs are incurred in auditing a typical tax return. Time spent by clerical employees, 10 hours at $12 per hourTime spent by tax professional, 20 hours at $25 per hourComputer time, $50 per auditTelephone charges, $10 per auditPostage, $2 per audit In addition, the department incurs $10,000 of fixed costs each month that are associated with the process of auditing returns.Required: Draw a graph depicting the monthly costs of auditing state tax returns. Label the horizontal axis “Tax returns audited.”
Krall Company recently had a computer malfunction and lost a portion of its accounting records. The company has reconstructed some of its financial performance measurements including components of the return on investment calculations. 1. Help Krall rebuild its information database by completing the following table: Note: Round your intermediate calculations to 2 decimal places. Round your final answers to 2 decimal places, (i.e. 0.1234 should be entered as 12.34%.). Return on Investment Profit Margin Investment Turnover Operating Income Sales Revenue Average Invested Assets $51,000.00 $709,000.00 $1,420,000.00 4.06% 9.90% 0.41 $105,128.10 $2,590,000.00 24.14% 14.20% 1.70 $3,043,000.00 11.205 5.09% 2.20 $519,000.00
Over the past two years, Kermit Stone, The comptroller of Hilton Company, Has been concerned that the company has been paying a large amount of money for state unemployment taxes. On reviewing the "unemployment file" with the head accountant, Deborah Martha, he learns that the companies tax rate is near the top of the range of the states experience-rating system. After calling the local unemployment office, stone realizes that the turnover of employees at Hilton company has had an adverse effect on the companies tax rates. In addition, after consulting with Murtha, he discovers that the eligibility reports that come from the state unemployment office or just signed and sent back to the state without any review. The eligibility reports or notices that an ex employee has filed a claim for unemployment benefits. By signing these reports "blindly", The company, in effect, tells the state that the employee is eligible for the benefits. Any benefits paid or charged by the state against…
TrvlSafe, a manufacturer of air-freightable petcrates with imbedded chips to monitor the healthof the pet, has identified two projects that haverelatively high risk; however, they are expected tomove the company into new revenue markets. Utilizea spreadsheet to determine:(a) Which of the two projects, if either, are acceptablewhen the MARR is equal to theafter-tax WACC.(b) If the same projects are acceptable, providedthe risk factors are significant and warrant anadditional return of 2% per year above the establishedMARR.Initial After-taxProject Investment, $ Cash Flow, $/Year Life, YearsWildlife (W) −250,000 48,000 10Reptiles (R) −125,000 30,000 5 Financing will be developed using a D-E mix of 60%–40% with equity funds costing 7.5% per year. Debt financing will be developed from $10,000, 5% per year, quarterly dividend, 10-year bonds. The effective tax rate is 30% per year.

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