Williams Manufacturing uses scrap metal to produce various tools, such as drill bits, hammer heads, saw blades, and nails. The CEO has asked you to analyze the saw blades division to determine asset turnover for last quarter. You find that the saw blades division had an ROI of 40%, sales of $15.50 million, and operating profits of $0.775 million. What was the asset turnover rate for last quarter?
Q: Use share point analysis to determine how much Ben's should increase their administrative…
A: Ben's Tasty Rigatoni sales revenue =$2,560,000 Industry sales = $16,000,000 costs of the goods…
Q: Williams Manufacturing uses scrap metal to produce various tools, such as drill bits, hammerheads,…
A: Asset turnover: This ratio analyzes number of times sales or revenue generated from the available…
Q: Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of…
A: Payback period is an amount of time required to recover initial investment. Payback period =Initial…
Q: The Your Division had average operating assets totaling $150,000 last year. The minimum required…
A: Residual income = net operating income - average operating assets x minimum required rate of return
Q: Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of…
A: Payback period is the period in which total investment made into a project is returned ignoring the…
Q: Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The business…
A: Break-even point: A breakeven analysis is a calculation of the point at which revenue equals…
Q: ABC Company is a manufacturing firm and has operated for twenty years now. As a very established…
A: SOLUTION- WORKING NOTE -1 SCHEDULE FOR COST OF GOODS MANUFACTURED- PARTICULARS AMOUNT AMOUNT…
Q: Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services…
A: Formulas: Residual income = Net operating income - Minimum required return
Q: Valencia Manufacturing Company manufactures and sells musical gadgets. The business earned Operating…
A: The profit calculated by deducting the operating expenses from the gross profit in a business is…
Q: Jan Shumard, president and general manager of Danbury Company, was concerned about thefuture of one…
A: Fixed costs are those costs which will not be changed with change in activity level upto a…
Q: James Tan is the general manager of the Industrial Product Division, and his performance is measured…
A: SOLUTION- TOTAL CAPITAL INVESTED = WORKING CAPITAL + PLANT & EQUIPMENT .
Q: Gabbe Industries is a division of a major corporation. Last year the division had total sales of…
A: Ratio analysis helps to analyze the financial statements of the company. The management can make…
Q: uniper Design Ltd. of Manchester, England, is a company specializing in providing design services to…
A: Residual Income = Net operating income - Required return
Q: Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services…
A: Residual income of the business means excess of operating income over income required at minimum…
Q: ivision of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $4.08 million…
A: Return on investment Return on income is used as a measure to the divisional performance. This a…
Q: Get Hitched Inc. is a production company that is in the process of testing a strategic initiative…
A: Gross Profit Gross profit is the gross margin which is net sales after deducting cost of goods sold.
Q: Swagelok Enterprises is a manufacturer of miniature fittings and valves. Over a 5-year period, the…
A: A discount rate at which the net present worth of an investment is equal to zero is term as internal…
Q: a. What is the division's residual income before considering the project? b. What is the division's…
A: Residual income= operating income - (minimum required return * operating assets) a. Operation income…
Q: At the end of Year 1, Cardigan Corporation implemented a new labor process and redesigned its…
A: Price recovery component is calculated as difference between total profit change less profit linked…
Q: Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for…
A:
Q: Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of…
A: Products A Cost =330000 Revenue =370000 Cost =168000+66000+82000=316000 Product B Cost =515000…
Q: Get Hitched Inc. is a production company that is in the process of testing a strategic initiative…
A: Total cost for both procedures + Gross profit = Current Sales
Q: Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services…
A: The return earned beyond the minimum required return on assets is referred to as the residual…
Q: (a) Prepare a performance report for the manager of the Deluxe Division. (b) What is the best…
A:
Q: B): As an engineering manager, suppose that the outputs of a company for the production of fire…
A: Efficiency = ( work output/ input ) x 100 = 80000/800000 x 100 = 10% In order to find the net…
Q: What must the new selling price per unit be if the company wishes to meet the shareholder's desired…
A: Given: Particulars Amount ($) Direct Material 58 Direct Labor 74 Variable Manufacturing…
Q: Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services…
A: GIVEN THAT, Net operating income = $490000 sales = $1300000 rate of return = 11% residual income =…
Q: Recognising that there would be fierce competition to regain lost markets, Management felt that…
A: The production cost report prepared for process costing consists of costs incurred for completed…
Q: ABC Company is a manufacturing firm and has operated for twenty years now. As a very established…
A:
Q: Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services…
A: Residual Income is income earned beyond the minimum rate of return. It is also known as economic…
Q: Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products.…
A: Return on investment is the estimated percentage which the company expect to receive on the…
Q: Find (a) total sales revenue, (b) selling price, (c) rate of return on investment, and (d) markup…
A: a. Total sales revenue = Variable costs + Fixed costs + Operating income = (500,000 units x $4) +…
Q: Recognising that there would be fierce competition to regain lost markets, Management felt that…
A: First we will calculate production cost for Jan based on given information.…
Q: Calculate the payback period for each product. 2. Calculate the net present value for each product.…
A: Payback Period: It refers to the period in which an investment or a project recovers its initial…
Q: You have been recently promoted to the divisional manager of Hadi Ltd (“the Company”), a company…
A: Hadi Ltd.'s Head office expects the controllable profit of a division = 35% sales For the month of…
Q: Assume that as a result of reorganizing the production process, the management of Benoit…
A: Operating income indicates to an earning remain after deducting all the expenses incurred in the…
Q: Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services…
A: Residual Income = Net Operating Income - (Average Operating Assets * Minimum Required Return)
Q: Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products.…
A: Residual income is the income that an individual continues to receive after the work is done.
Q: Juniper Design Ltd. of Manchester, England, provides design services to residential developers. Last…
A: Residual Income = Net Operating income - Average Operating assets * Minimum required return
Q: What was the Paper Division's net operating income last year? The following information relates to…
A: Net operating income(NOI) =Return on investment (ROI) × Assets Minimum required rate of return:…
Q: Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of…
A: IRR is a rate at which the present value of cash inflows is equal to the present value of cash…
Q: You have been recently promoted to the divisional manager of Hadi Ltd (“the Company”), a company…
A: If a company has various branches each branch is required to maintain its records properly on order…
Q: Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of…
A: Hey, since there are multiple requirements posted, we will answer the first three requirements. If…
Q: The Singer Division of Patio Enterprises currently earns $3.48 million and has divisional assets of…
A: Residual income: It is the amount of income that remains after paying all the debt and expenses.
Q: Recognising that there would be fierce competition to regain lost markets, Management felt that…
A: The question is based on the concept of Cost Accounting.
Q: The condensed income statement for the Consumer Products Division of Tri-State Industries Inc. is as…
A: 1.Using the DuPont formula for return on investment, determine the profit margin, investment…
Williams Manufacturing uses scrap metal to produce various tools, such as drill bits, hammer heads, saw blades, and nails. The CEO has asked you to analyze the saw blades division to determine asset turnover for last quarter. You find that the saw blades division had an
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Jack Jones, the materials manager at Precision Enterprises, is beginning to look for ways to reduce inventories. A recent accounting statement shows that the inventory investment for raw materials is $4,076, 100, for work-in-process is $6,888,000, and for finished goods is $2,994,000. This year's cost of goods sold will be about $30,108,000. Assume that there are 52 business weeks per year. a. Express total inventory as weeks of supply. The weeks of supply is weeks. (Enter your response rounded to one decimal place.) 27 **Jack Jones, the materials manager at Precision Enterprises, is beginning to look for ways to reduce inventories. A recent accounting statement shows that the inventory investment for raw materials is $3,672,800, for work-in-process is $6,978,000, and for finished goods is $2,675,000. This year's cost of goods sold will be about $24,700,000. Assume that there are 52 business weeks per year. a. Express total inventory as weeks of supply. The weeks of supply is 28.05 weeks. (Enter your response rounded to one decimal place.) b. Express total inventory as inventory turns. The inventory turnover is turns per year. (Enter your response rounded to one decimal place.)The Hydride Division of Murdoch Corporation is an investment center. It has $1,000,000 of operating assets. During 2015, the Hydride Division earned operating income of $400,000 on $6,000,000 of sales. Murdoch's companywide return on investment or desired rate of return is approximately 10%. (Show work.) c. What is the turnover? d. What is the residual income?
- You are doing some financial analysis research for your work and managed to get (incomplete) data. You will use this data to deduce the required information. You can assume 365 days in a year. a) Alpha Co. reported a cost of goods sold of $64,380.00 and an accounts payable balance of $16,700.00 last year. Compute the average time taken to pay suppliers. Discuss the significance of a longdays’ costs in payables for the firm. b) Bravo Ltd. equity multiplier is 1.93, its total asset turnover is 2.65, and its profit margin is 4.20 percent. Compute the Return on Equity (ROE). Explain the impact on ROE, should the total asset turnover decline next year. c) Charlie Inc. has a profit margin of 7.90 percent, a total asset turnover of 1.54, and a Return on Equity (ROE) of 13.47 percent. Solve for the debt-equity ratio. d) Delta GMBH’s ROE is 8.9 percent. Sales are $2,956,000.00. Total debt ratio is 0.3743. Total debt is $964,000.00. Determine the return on assets (ROA).During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000,000. A. Based on this information, calculate asset turnover. B. Using the sales margin from the previous exercise, what is the total ROI for the company during the current year?Forchen, Inc., provided the following information for two of its divisions for last year: Required: 1. For the Small Appliances Division, calculate: a. Average operating assets b. Margin c. Turnover d. Return on investment (ROI) 2. For the Cleaning Products Division, calculate: a. Average operating assets b. Margin c. Turnover d. Return on investment (ROI) 3. What if operating income for the Small Appliances Division was 2,000,000? How would that affect average operating assets? Margin? Turnover? ROI? Calculate any changed ratios (round to four significant digits).
- Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $4.18 million in assets, manufactures a special testing device. At the beginning of the current year, Forbes invested $5.05 million in automated equipment for test machine assembly. The division 's expected income statement at the beginning of the year was as follows. Sales revenue $ 16,080,000 Operating costs Variable 2,040, 000 Fixed (all cash) 7,600,000 Depreciation New equipment 1,610,000 Other 1,350,000 Division operating profit $ 3,480,000A sales representative from LSI Machine Company approached Oscar in October. LSI has for $5.85 million a new assembly machine that offers significant improvements over the equipment Oscar bought at the beginning of the year. The new equipment would expand division output by 10 percent while reducing cash fixed costs by 5 percent. It would be depreciated for accounting purposes over a three-year life. Depreciation would…Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $4.5 million in assets, manufactures a special testing device. At the begirning of the current year, Forbes invested $3.5 million in automated equipment for test machine assembly. The division's expected income statement at the beginning of the year was as follows. Sales revenue $15, 980, 000 Operating costs Variable 2,100,000 7,180,000 Fixed (all cash) Depreciation New equipment 1,500,000 1, 200,000 Other Division operating profit $ 4,000, 000 A sales representative from LSI Machine Company approached Oscar in October. LSI has for $7.5 million a new assembly machine that offers significant improvements over the equipment Oscar bought at the beginning of the year. The new equipment would expand division output by 10 percent while reducing cash fixed costs by 5 percent. It would be depreciated for accounting purposes over a 4- year life. Depreciation would be…Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $4.18 million in assets, manufactures a special testing device. At the beginning of the current year, Forbes invested $5.12 million in automated equipment for test machine assembly. The division’s expected income statement at the beginning of the year was as follows. Sales revenue $ 16,150,000 Operating costs Variable 2,100,000 Fixed (all cash) 7,640,000 Depreciation New equipment 1,530,000 Other 1,360,000 Division operating profit $ 3,520,000 A sales representative from LSI Machine Company approached Oscar in October. LSI has for $6.27 million a new assembly machine that offers significant improvements over the equipment Oscar bought at the beginning of the year. The new equipment would expand division output by 10 percent while reducing cash fixed costs by 5 percent. It would be depreciated…
- Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of $480,000 on sales of $2,200,000. The company’s average operating assets for the year were $2,400,000 and its minimum required rate of return was 10%. Required: Compute the company’s residual income for the year.Last year Minden Company introduced a new product and sold 25,500 units of it at a price of $90 per unit. The product's variable expenses are $60 per unit and its fixed expenses are $831,300 per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each $2 reduction in its selling price. If the company will only consider price reductions in increments of $2 (e.g., $68, $66, etc.), what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit? 4. What would be the break - even point in unit sales and in dollar sales using the selling price that you determined in requirement 3?Last year Minden Company introduced a new product and sold 25,800 units of it at a price of $95 per unit. The product's variable expenses are $65 per unit and its fixed expenses are $830,400 per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each $2 reduction in its selling price. If the company will only consider price reductions in increments of $2 (e.g., $68, $66, etc.), what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price that you determined in requirement 3? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3…