An Investment center has sales of $30,000,000, income of $9,000,000, and average assets of $40,000,000. Assuming a target income of 12% of average wwns, resida income $4,200,00o. True or False True False
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- if requires a minimum return on its investments of 15%, what is their residual income? NUBD Co has the following information available for one of its divisions: Average operating assets P5,000,000 Return on investment Sales 40% P8,000,000If operating income is P60,000, average operating assets are P240,000, and the minimum required rate of return is 20%, what is the residual income? 50% 25% P12,000 P45,000Barrera Corporation provides the following financial information: Minimum acceptable operating income $556,600 Average total assets $2,000,000 Operating income $708,000 Return on investment 35.4% Net sales $800,000 Calculate the target rate of return. (Round your answer to two decimal places.) A. 69.58% B. 88.50% C. 27.83% D. 35.40%
- If net operating income is $80,000, average operating assets are $640,000, and the minimum required rate of return is 11%, what is the residual income? Multiple Choice $89,600 $60,800 $9,600 $70,400Barrera Corporation provides the following financial information: Minimum acceptable operating income $556,600 Average total assets $2,000,000 Operating income $708,000 Return on investment 35.4% Net sales $800,000 Calculate the target rate of return. (Round your answer to two decimal places.)Steel corporation presented the following results for the period just ended: Sales 6,000,000 Capital Investment 2,000,000 Net Income 1,000,000 To arrive at the return on investment, which of the following should be used? A. ROI = (6/2) X (1/6) B. ROI= (2/6) X (1/6) C. ROI= (6/2) X (6/1) D. ROI= (2/6) X (6/1)
- Foreman Publishing Company’s income for the most recent quarter was $500,000, and the averagenet book value (NBV) of assets during the quarter was $1.5 million. If the company has a requiredrate of return of 15% on investment, what was the residual income (RI) for the quarter?Alexander Inc. makes basketballs. The results for the year were as follows: Basketballs Sales $450,000 Income $72,000 Asset base $300,000 Weighted average cost of capital 15% Required:Compute the following amounts for the company:SHOW ALL CALCULATIONS. ROUND EACH NUMBER TO TWO (2) DECIMAL PLACES. A. Return on investment (ROI). B. Residual income if the desired rate of return is 20%. C. EVA. D. Turnover. E. Margin.Your Company's residual income was $8,500. Net income was $170,000 and average operating assets were $850,000. What was the expected return percentage? Group of answer choices 17% 21% 19% 18% 20%
- Mason Corporation had $1,096,000 in invested assets, sales of $1,237,000, income from operations amounting to $203,000, and a desired minimum rate of return of 15%. The residual income for Mason Corporation is a.$38,600 b.$54,040 c.$0 d.($5,300)Given the following data: Average operating assets $ 1,116,000 Total liabilities $ 167,400 Sales $ 837,000 Contribution margin $ 502,200 Net operating income $ 167,400 Return on investment (ROI) is: Multiple Choice 20.0% 15.0% 60.0% 45.0%Howard has an ROI of 26% based on revenues of $408,000. The investment turnover is 2. What is the residual income if the cost of capital is 15%?A.) (12,440)B.) 106,080C.) 61,200D.) 22,440