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.) Company B Sales $ 9,390,000 $ 7,650,000 $ 5,085,000 Net operating income 2$ 324,000 Average operating assets $ 3,130,000 2$ 2,034,000 Return on investment (ROI) 20 % 18 % % Minimum required rate of return: Percentage 18 % % 12 % Dollar amount $ 360,000 Residual income 2$ 101,700
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- A company is a wholesale distributor of electronic equipment who has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales P 1,000,000Variable expenses 390,000Contribution Margin 610,000Fixed Expenses 625,000Net operating Income (loss) P(15,000) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Division East Central WestSales P250,000 P400,000 P350,000Variable expenses as a percentage of sales 52% 30% 40%Traceable Fixed Expenses P160,000 P200,000 P175,000 Required: a. Prepare a contribution format income statement segmented by the division. East Central West b. The marketing department has proposed increasing the West Division’s monthly advertising by P15,000 believing that 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. Do not round your intermediate calculations.)A family friend has asked your help in analyzing the operations of three anonymous companies operatingin the same service sector industry. Supply the missing data in the table below:CompanyA B CSales .............................................................. $9,000,000 $7,000,000 $4,500,000Net operating income ................................... $ ? $ 280,000 $ ?Average operating assets ............................. $3,000,000 $ ? $1,800,000Return on investment (ROI) .......................... 18% 14% ?Minimum required rate of return:Percentage ................................................ 16% ? 15%Dollar amount ............................................ $ ? $ 320,000 $ ?Residual income ............................................ $ ? $ ? $ 90,000
- Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales $ 1,610,000 Variable expenses 659,000 Contribution margin 951,000 Fixed expenses 1,046,000 Net operating income (loss) $ (95,000) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Division East Central West Sales $ 430,000 $ 610,000 $ 570,000 Variable expenses as a percentage of sales 52 % 34 % 40 % Traceable fixed expenses $ 288,000 $ 321,000 $ 193,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $29,000 based on the belief that it would…Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales $ 1,644,000 Variable expenses 608,620 Contribution margin 1,035,380 Fixed expenses 1,139,000 Net operating income (loss) $ (103,620) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Division East Central West Sales $ 444,000 $ 650,000 $ 550,000 Variable expenses as a percentage of sales 48% 27% 40% Traceable fixed expenses $ 282,000 $ 335,000 $ 200,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $20,000 based on the belief that it would increase that division's sales by 14%. Assuming…A fire has destroyed a large percentage of the financial records of the Inferno Company. You have the task of piecing together information in order to release afinancial report. You have found the return on equity to be 14.3 percent. Sales were $1,735,000, the total debt ratio was 0.35, and total debt was $648,000. What is the Return on Assets?
- Company A Company B Company C Sales $450,000 $670,000 $630,000 Net operating income $43,000 Average operating assets $168,000 $155,000 Return on investment (ROI) 19 % 19 % % Minimum required rate of return: Percentage 14 % % 14 % Dollar amount $41,000 Residual income $6,000 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. Do not round your intermediate calculations.)The alphabetical list of items that may be relevant in the preparation of a statement of profit or loss of Yemiteh Corporation is provided below: Decrease in inventories of finished goods and work in progress P107,900 Depreciation expense 17,000 Employee benefits expense 43,000 Finance costs 18,000 Income tax expense 32,000 Other expenses 5,500 Other income 11,300 Raw material and consumables used 92,000 Revenue 355,000 Share of profit of associates 30,100 Work performed by the entity and capitalized 15,000 The profit for the year isKrall 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%.).) Return on Investment Profit Margin Investment Turnover Operating Income Sales Revenue Average Invested Assets % % $50,000.00 $714,000.00 $1.550.000.00 % 9.80 % 0.50 $1,23,970.00 $2,530,000.00 % 15.70 % 1.15 $1,955,000.00 11.10 % % 2.80 $505,000.00
- A recent accounting graduate from Divine Word University evaluated the operating performance of Boswell Company's four divisions. The following presentation was made to Boswell's Board of Directors. During the presentation, the accountant made the recommendation to eliminate the Southern Division stating that total net income would increase by P40,000. (See analysis below.) Other Three Divisions Southern Division Total Sales P2,000,000 P480,000 P2,480,000 Cost of Goods Sold 950,000 400,000 1,350,000 Gross Profit…Checkpoint Systems is a leading provider of source tagging, handheld labeling systems, retail merchandising systems, and bar-code labeling systems. In a press release, Checkpoint stated the following: GAAP reported net loss for the fourth quarter of 2004 was 29.3 million, or 0.78 per diluted share, compared to net earnings of 4.5 million, or 0.13 per diluted share, for the fourth quarter 2003. Excluding impairment and restructuring charges, net of tax, the Companys net income for the fourth quarter 2004 was 0.30 per diluted share, compared to 0.27 per diluted share in the fourth quarter 2003. Calculate the amount of the impairment and restructuring charges Checkpoint reported in 2004 and 2003. Discuss why the firm reported earnings both including and excluding impairment and restructuring charges.You are considering two possible companies for investment purposes. The following data is available for each company. Additional Information: Company A: Bad debt estimation percentage using the income statement method is 6%, and the balance sheet method is 10%. The $230,000 in Other Expenses includes all company expenses except Bad Debt Expense. Company B: Bad debt estimation percentage using the income statement method is 6.5%, and the balance sheet method is 8%. The $140,000 in Other Expenses includes all company expenses except Bad Debt Expense. A. Compute the number of days sales in receivables ratio for each company for 2019 and interpret the results (round answers to nearest whole number). B. If Company A changed from the income statement method to the balance sheet method for recognizing bad debt estimation, how would that change net income in 2019? Explain (show calculations). C. If Company B changed from the balance sheet method to the income statement method for recognizing bad debt estimation, how would that change net income in 2019? Explain (show calculations). D. What benefits do each company gain by changing their method of bad debt estimation? E. Which company would you invest in and why? Provide supporting details.