1. Consider the data for each of the following four independent companies. Calculate the missing values in the table below. For margin and ROI, enter your answers as percentages, rounded to two decimal places. For example, the decimal value .03827 would be entered as "3.83" percent. For turnover, enter your answer as a decimal value rounded to two decimal places.      A      B      C      D   Revenue $10,000   $49,000   $96,000   $fill in the blank 1   Expenses $8,000   $fill in the blank 2   $90,240   $fill in the blank 3   Operating income $2,000   $12,250   $fill in the blank 4   $fill in the blank 5   Assets $40,000   $fill in the blank 6   $48,000   $9,500   Margin fill in the blank 7 % 25 % fill in the blank 8 % 6.00 % Turnover fill in the blank 9   0.50   fill in the blank 10   2.00   ROI fill in the blank 11 % fill in the blank 12 % fill in the blank 13 % fill in the blank 14 % 2. Assume that the cost of capital is 9 percent for each of the four firms. Compute the residual income for each of the four firms. If the residual income is negative, enter a negative amount.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing
Section: Chapter Questions
Problem 17E: Consider the data for each of the following four independent companies: Required: 1. Calculate the...
icon
Related questions
Question

Margin, Turnover, ROI

Required:

1. Consider the data for each of the following four independent companies. Calculate the missing values in the table below. For margin and ROI, enter your answers as percentages, rounded to two decimal places. For example, the decimal value .03827 would be entered as "3.83" percent. For turnover, enter your answer as a decimal value rounded to two decimal places.

     A      B      C      D  
Revenue $10,000   $49,000   $96,000   $fill in the blank 1  
Expenses $8,000   $fill in the blank 2   $90,240   $fill in the blank 3  
Operating income $2,000   $12,250   $fill in the blank 4   $fill in the blank 5  
Assets $40,000   $fill in the blank 6   $48,000   $9,500  
Margin fill in the blank 7 % 25 % fill in the blank 8 % 6.00 %
Turnover fill in the blank 9   0.50   fill in the blank 10   2.00  
ROI fill in the blank 11 % fill in the blank 12 % fill in the blank 13 % fill in the blank 14 %

2. Assume that the cost of capital is 9 percent for each of the four firms. Compute the residual income for each of the four firms. If the residual income is negative, enter a negative amount.

A's residual income $fill in the blank 15
B's residual income $fill in the blank 16
C's residual income $fill in the blank 17
D's residual income $fill in the blank 18
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 20 images

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,