XYZ Company has two divisions, A and B. Information for each division is as follows: A Net earnings for division P 40,000 P 260,000 Asset base for division P100,000 P1,200,000 Target rate of return 15% 18% Margin 10% 20% Weighted average cost of capital 12% 12% What is the operatting asset turnover for A?
Q: 12. Z Division of XYZ Corp. has the following information for 2002: $1,800,000 10% Assets available…
A: Target income = $1,800,000 x 10% = $180,000
Q: A company's divislon has sales of $6,000,000, Income of $240,000, and average assets of $4,800.000.…
A: Financial ratios are used to check different aspects of a company - liquidity, solvency, etc. They…
Q: The Marine Division of Pacific Corp. has average invested assets of $110,000,000. Sales revenue of…
A: Solution:- a)Calculation of Return on investments as follows under:- It Indicates how well an…
Q: Romano Corporation has three operating divisions and requires a 14% return on all investments.…
A: Solution: Division X Division Y Division Z Revenues $991,000.00 $733,000.00 $1,128,214…
Q: The Marine Division of Pacific Corp. has average invested assets of $110,000,000. Sales revenue of…
A: Residual income = Operating income - (Average invested assets x Hurdle rate)
Q: requires à minimum return on its investments of 5%, what is their Pesidual income? * NUBD Co. has…
A: In managerial accounting, Return On Investment explains how much operating income a business firm…
Q: Selected data from Box Division's accounting records revealed the following: Sales $ 825,000…
A: The asset turnover ratio assesses a company's assets' effectiveness in generating income or sales.…
Q: Division A's asset turnover (AT) is (rounded to two decimal places):
A: Given that , Sales = $490000 Average investment = $416500 Operating income = $ 83300
Q: Campbell Technologies, Inc. has three divisions. Campbell has a desired rate of return of 13.0…
A: GIVEN DATA Campbell Technologies, Inc. has three divisions. Campbell has a desired rate of return of…
Q: Operating Income Invested Assets Retail Division $9,600,000 $40,000,000 Commercial Division…
A: Solution a: Return on Investment = Operating income / invested assets Retail division =…
Q: Magnolia Company's Division A has operating income of $80,000 and assets of $400,000. The minimum…
A:
Q: Sales P 10,000,000 Average invested capital…
A: Solution: Asset turn-over ratio of a division represents the efficiency of division's assets in…
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A:
Q: AB Division had the following information: Asset base in AB Division Net income in AB Division…
A: Economic Value Added is net operating profit after taxes (or NOPAT) less a capital charge, the…
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A: Return on investment represents the profit earned on an investment made. It is calculated by…
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A: Profit Margin = Income from Operations / Sales Investment Turnover = Sales / Invested Assets Rate of…
Q: he Break Division
A: Operating income is used to calculate the profits or the entity's cash flow. A residual is an amount…
Q: XYZ Company has two divisions, A and B. Information for each division is as follows:…
A: Margin = Net earnings for division / Total sales for the division Total sales for the division = Net…
Q: Benson Technologies, Inc. has three divisions. Benson has a desired rate of return of 12.5 percent.…
A: a 1) Return on Investment of division =Operating incomeAsset Division Asset Operating income…
Q: The following are selected data for the division for the consumer products of ABC Corp for 2019:…
A: Ratio analysis means where different ratio of various years of years companies has been compared and…
Q: Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.01…
A: Return on investment is the measurement of the performance of the investment. 1 Return on investment…
Q: Assume that Division Blue has achieved a yearly income from operations of $157,000 using $956,000 of…
A: Residual income: Residual income is the excess of income over the minimum acceptable return on…
Q: XYZ Company has two divisions, A and B. Information for each division is as follows: B Net earnings…
A: Margin is one of the profitability ratio being used by the business. This is calculated by dividing…
Q: Ceder Products is a division of a major corporation. Last year the division had total sales of…
A: Formula; Turnover=Net operating incomeAverage operating assets
Q: • The following are selected data for the division for the consumer products of ABC Corp for 2019:…
A: Sales = 50,000,000 Assets = 20,000,000
Q: The following are selected data for the division for the consumer products of ABC Corp for 2019:…
A: Solution: Return on sales = net income / sales = 2000000/ 50000000 = 4%
Q: Magnolia Company's Division A has operating income of $119,900 and assets of $327,100. The minimum…
A: Residual income: Residulal income means excess of income earned over the desired income. Desired…
Q: The following are selected data for the division for the consumer products of ABC Corp for 2020:…
A: Assets turnover ratio = Sales / Average Invested capital where, Average Invested capital =…
Q: The following information pertains to Splash Brothers’ Corporation: Sales margin 25% Capital…
A: Operating Assets: Operating assets are assets that are bought for use in the performance of a firm's…
Q: Magnolia Company's Division A has operating income of $84,800 and assets of $332,600. The minimum…
A: Residual income can be calculated by deducting expected return from its operating income.
Q: How much is residual income?
A: The formula for Residual income is : Operating Income-(Minimum required rate of return× operating…
Q: The following are selected data for the division for the consumer products of ABC Corp for 2020:…
A: Ratio analysis means where different ratio of various years of years companies has been compared and…
Q: The following are selected data for the division for the consumer products of ABC Corp for 2020:…
A: Introduction:- The following formula used to calculate as follows:- Residual income = Net income -…
Q: NUBD Company has two divisions, X and Y. Information for each division is as follows: P40,000…
A: Economic value added (EVA) = Net earnings after tax - (Assets invested x Weighted average cost of…
Q: YZ Company has two divisions, A and B. Information for each division is as follows…
A: Solution: return on investment for A = Net Earnings for division / Assets base = 40000/100000 = 40%…
Q: $ 10,000,000 $ 2,000,000 $ 2,500,000 % ales revenue acome $ 400,000 verage investment ales margin 20…
A: Sales margin is the amount of profit generated through selling the goods or providing the service to…
Q: requires a minimum return on its investments of 15%, what is their residual income? NUBD Co has the…
A:
Q: XYZ Company has two divisions, A and B. Information for each division is as follows:…
A: Operating asset turnover= Sales value / Operating assets.
Q: Global Imex has two divisions; one located at Accra and the other in Takoradi. The following is an…
A: Performance evaluation of a segment or a division can be done using different ratio analysis. Using…
Q: NUBD Company has two divisions, X and Y. Information for each division is as follows: Net earnings…
A: In order to determine the Economic Value Added (EVA), the capital invested is required to be…
Q: The following are selected data for the division for the consumer products of ABC Corp for 2019:…
A: Solution Return on investment = net income / average invested assets = 2000000/ 20000000 = 10%
Q: What is the Residual Income for Stevenson Corporation, given the following info: Invested Assets =…
A: Residual income is the excess of income over the minimum required rate of return. It indicates the…
Q: Warren Company has two divisions with the following results: Ashland $ 442,000 $ 262,000 $ 180,000…
A: Investment turnover helps to determine the efficiency of the company by measuring the company's…
Q: Assume that a division of MN Company has a 10% return on sales, income of $10,000, and an investment…
A: Formulas: Return on sales = Net income / Sales Investment turnover = Sales / Investment
Q: The following data pertain to Dakota Division's most recent year of operations. Income $ 4,350,000…
A: Sales Margin: The sales margin, also known as the contribution margin, is the amount of money a firm…
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- XYZ Company has two divisions, A and B. Information for each division is as follows: Net earnings for division Asset base for division Target rate of return Margin Weighted average cost of capital What is the total sales amount for B? 1. P666,667 2. P800,000 3. P1,300,000 4. P1,200,000 A P 40,000 P100,000 15% 10% 12% B P 260,000 P1,200,000 18% 20% 12%XYZ Company has two divisions, A and B. Information for each division is as follows: A Net earnings for division P 40,000 P 260,000 Asset base for division P100,000 P1,200,000 Target rate of return 15% 18% Margin 10% 20% Weighted average cost of capital 12% 12% What is the operating asset turnover for A? 1. 0.15 2.0.10 3.4.00 4. 2.50 0 1 O 2 O 3 O 4XYZ Company has two divisions, A and B. Information for each division is as follows: A B Net earnings for division P 40,000 P 260,000 Asset base for division P100,000 P1,200,000 Target rate of return 15% 18% Margin 10% 20% Weighted average cost of capital 12% 12% What is the total sales amount for B? P666,667 P800,000 P1,300,000 P1,200,000 Group of answer choices 1 2 3 4
- XYZ Company has two divisions, A and B. Information for each division is as follows: A B Net earnings for division P 40,000 P 260,000 Asset base for division P100,000 P1,200,000 Target rate of return 15% 18% Margin 10% 20% Weighted average cost of capital 12% 12% What is the operating asset turnover for A? 0.15 0.10 4.00 2.50 Group of answer choices 1 2 3 4XYZ Company has two divisions, A and B. Information for each division is as follows: A Net earnings for division P 40,000 P 260,000 Asset base for division P100,000 P1,200,000 Target rate of return 15% 18% Margin 10% 20% Weighted average cost of capital 12% 12% What is the total sales amount for B? 1. P666,667 2. P800,000 3. P1,300,000 4. P1,200,000 O 1 O 2 O 3 O 4XYZ Company has two divisions, A and B. Information for each division is as follows A Net earnings for division P 40,000 P 260,000 Asset base for division P100,000 P1,200,000 Target rate of return 15% 18% Operating Margin (ROS) 10% 20% Weighted average cost of capital 12% 12% What is the return on investment for A? 1. 18% 2. 40% 3.20% 4. 15% O 1 O 2 3 O 4
- A company has the following information available for three of its divisions. COMPANY INFORMATION FOR THREE DIVISIONS Division M Investment in Assets $ 1,200,000 Division N ? Division O $ 2,500,000 Operating Income Sales Revenue ? $ 160,000 250,000 ? $ 3,200,000 ? Profit Margin Ratio 10.00% ? 6.25% Required Rate of Return 10.00% 12.50% 15.00% Return on Investment 15.00% 20.00% ? What is Division O's sales revenue? $1,666,667. $4,000,000. $2,000,000. $ 375,000.The following are selected data for the division for the consumer products of ABC Corp for 2020: Sales P 10,000,000 Average invested capital 4,000,000 Net Income 400,000 Cost of Capital 8% What is the asset turn-over ratio for the division? 1. .25 times 2. 2.5 times 3. 8 times 4. 10% O 1 O 2 O 3 O 4XYZ Company has two divisions, A and B. Information for each division is as follows A B Net earnings for division P 40,000 P 260,000 Asset base for division P100,000 P1,200,000 Target rate of return 15% 18% Operating Margin (ROS) 10% 20% Weighted average cost of capital 12% 12% What is the return on investment for A? 18% 40% 20% 15%…
- The following results are available for Division X and Y:Division X Division YProfit before interest and tax P185 000 P172, 000Capital employed P1, 540, 000 P1, 650, 000The cost of capital is 10%.Calculate and comment on the performance of the departments based on:a. Return on capital employed (4 marks)b. Residual incomThe sales, income from operations, and invested assets for each division of Wren Company are as follows: Income from Invested Sales Operations Assets Division C 5.00 $630,000 $4,000,000 Division D 6,800,000 760,000 3,900,000 Division E 3,750,000 750,000 7,500,000 Management has established a minimum rate of return for invested assets of 10%. Do Not Use Commas or $ in Your Answers What is the Residual Income for Division C? What is the Residual Income for Division D? What is the Residual Income for Division E? Based on Residual Income, Division is the most profitable.The following info is provided for three operating divisions. The minimum accepted rate of return by the investor is 7%. Division M N P invested assets 14,000,000 86,000,000 840,000 Compute Return on Investment for: a. Division M type your answer... b. Division N type your answer... c. Division P type your answer... sales net income Compute Residual Income for: 25,000,000 112,000,000 1,750,000 d. Division M$ type your answer... e. Division N $ f. Division P$ type your answer... type your answer... 50,000,000 250,000,000 6,000,000 g. What division looks like the best division? type your answer...