b. As the table above shows, the plant is carried on Androscoggin's books at $48.68 million. However, it is a modern design, and could be sold to another copper company for $99 million How should this fact change your calculation of EVA? (Negative answers should be indicated by a minus sign. Enter your answer in millions rounded to 2 decimal places.) EVA Answer is complete but not entirely correct. (0.63) 3 million
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- The income statement comparison for Forklift Material Handling shows the income statement for the current and prior year. A. Determine the operating income (loss) (dollars) for each year. B. Determine the operating income (percentage) for each year. C. The company made a strategic decision to invest in additional assets in the current year. These amounts are provided. Using the total assets amounts as the investment base, calculate the return on investment. Was the decision to invest additional assets in the company successful? Explain. D. Assuming an 8% cost of capital, calculate the residual income for each year. Explain how this compares to your findings in part C.Athenian Venues Inc. just reported the following selected portion of its financial statements for the end of 2020. Your assistant has already calculated the 2020 end-of-year net operating working capital (NOWC) from the full set of financial statements (not shown here), which is 13 million. The total net operating capital for 2019 was 50 million. What was the 2020 net investment in operating capital? Athenian Venues Inc.: Selected Balance Sheet Information as of December 31 (Millions of Dollars)The following data are taken from the records of Dove Company, a division of Oasis Corporation for the year ended December 31, 2021 Sales 120,000,000.00Less: Variable Cost and Expenses 8,000,000.00Contribution Margin 4,000,000.00Less:: Direct Fixed Cost and Expenses 1,000,000.00Segment Income 3,000,000.00 The company used an average assets of P8,000,000.00 in 2021. The cost of capital is 12% Calculate the following:1. Return on Sales2. Asset Turnover3. ROI4. Residual Income
- The following information relates to Maine, Inc.: Total assets P9,000,000 After-tax operating income 1,500,000 Current liabilities 800,000 If the company has a 10% weighted-average cost of capital, its economic value added would be:Global Imex has two divisions; one located at Accra and the other in Takoradi.The following is an extract from the annual report for the 2010 financial year ACCRA TAKORADI Profit Before Depreciation 450,000 620,000 Depreciation 120,000 130,000 Non Current Assets 1,200,000 1,300,000 Current Assets 750,000 1,000,000 Current Liabilities 350,000 400,000 Cost of Capital is 20% Required (i) Using Return on Investment (ROI) and Residual Income, comment on the performance of the divisions.(ii) The Takoradi branch intends to sell one of the non-current assets with book value of GH¢120,000. This asset generates a profit of GH¢60,000. Accra also wants to acquire another asset costing GH¢90,000 that will generate a profit of GH¢40,000. To what extent will the decisions affect the performance of the divisions?how do i determine the working capital from the following information Sunland CompanyBalance SheetDecember 31, 2022 Assets Current assets Cash $ 61,800 Debt investments 87,000 Accounts receivable (net) 169,800 Inventory 155,150 Total current assets 473,750 Plant assets (net) 570,000 Total assets $ 1,043,750 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 153,500 Income taxes payable 36,000 Total current liabilities 189,500 Bonds payable 186,250 Total liabilities 375,750 Stockholders’ equity Common stock 351,000 Retained earnings 317,000 Total stockholders’ equity 668,000 Total liabilities and stockholders’ equity $1,043,750
- Refer to the following financial information of Scholz Company: NOPAT 8,250,000.00 EBITDA 17,725,000.00 Net Income 5,050,000.00 Capital Expenditures 6,820,000.00 After tax capital costs 6,280,000.00 Tax rate 40% Calculate the Company’s depreciation and amortization expenseAngel’s Pizza Ltd. Has existing assets in which it has a capital investment of P 150,000. The after tax operating income is 20,000 and company has a cost of capital of 12%. What is the estimated Economic Value Added (EVA) of the firm a. 147,600 b. 2,000 c. 18,000 d. 2,400From the following information compute the residual income of Frannie Ltd. a) Reported Earnings = $2,000,000 b) Financed its capital structure with $1,000,000 worth of equity at a required rate of return of 10%.
- You are given the following transactions relating to the capital expenditure of Marang Logistics Solutions (Pty) Ltd for the year ended 31 December 2022: The tax written down value of capital items on 1 January 2022 was: Cost Capital Allowance WDV Office Buildings 800,000 50,000 750,000 Furniture and Fittings 89,000 44,000 45,000 Other plant and machinery 350,000 125,000 225,000 Commercial Vehicles 1,600,000 750,000 850,000 The following purchases were…Jackson Corp. has an operating income of $109,000, average invested assets of $601,000, and a cost of capital of 7%. What is the residual income? Multiple Choice $42,070 $109,000 $66,930 $184,597The figures shown in the table below are an extract from the financial statements of Ridgeway (capital employed is $1.5m). $ Revenue 1,000,000 Cost of sales 400,000 Gross profit 600,000 Distribution expenses and administration cost 300,000 Profit before interest and tax 300,000 Finance cost 50,000 Profit before tax 250,000 Income tax expense 100,000 Profit after tax 150,000 What is the return on capital employed (ROCE)?