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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 and other amounts to whole dollars.)
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- Simple ROI and Residual Income Calculations. Consider the following data: 1.) DIVISION X Y Z Invested Capital P2,000,000 (1)1,300,000 P1,250,000 Income (2) 100,000 P182,000 P 150,000 Revenue P4,000,000 P3,640,000 (3) 3,750,000 Income Percentage of Revenue 2.5% (4) 5% (5) 4% Capital Turnover (6) 2 (7) 2.8 3 Rate of Return on Invested Capital (8) 5% 14% (9) 12% Required: 1. Which division is the best performer 2. Suppose each division is assessed an imputed interest rate of 20% on invested capital. Compute the residual income for each division.The following information pertains to Splash Brothers’ Corporation: Sales margin 25% Capital Turnover 2 Income ₱ 80,000 Required Rate of Return 10% What is the average investment or operating assets? Show solution Group of answer choices ₱ 160,000 ₱ 320,000 ₱ 180,000 ₱ 800,000Q23 Selected data from Box Division's accounting records revealed the following: Sales $ 345,060 Average investment $ 200,100 Net operating income $ 24,300 Minimum rate of return (divisional cost of capital) 11% Box Division's return on sales (ROS) is: (Round your percentages to one decimal place.) Multiple Choice 11.1%. 4.1%. 7.0%. 19.2%. 12.1%.
- INCOME STATEMENT Hermann Industries is forecasting the following income statement:Sales $8,000,000Operating costs excluding depr. & amort. 4,400,000EBITDA $3,600,000Depreciation & amortization 800,000EBIT $2,800,000Interest 600,000EBT $2,200,000Taxes (40%) 880,000Net income $1,320,000The CEO would like to see higher sales and a forecasted net income of $2,500,000. Assumethat operating costs (excluding depreciation and amortization) are 55% of sales and thatdepreciation and amortization and interest expenses will increase by 10%. The tax rate, whichis 40%, will remain the same. What level of sales would generate $2,500,000 in net income?Company A Company B Company C Sales $2,448,000 $1,665,000 Net operating income $318,240 $266,400 Average operating assets $1,530,000 $2,550,000 Margin 13 % 16 % 4 % Turnover 1.60 2.10 Return on investment (ROI) 0.21 % 8.00 % %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)
- The following selected data for BC Company for 2022: Sales P 2,000,000Variable Costs 1,200,000Traceable Fixed Costs 200,000Average Invested Capital 400,000Capital Charge 15% 1. The residual income amounted to? 2. Assuming the same information in the previous item, the return on investment percentage is?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.Jordan Company has two divisions, which reported the following results for the most recent year. Division I Division II Income ₱ 02,700,000 ₱ 00,600,000 Average invested capital ₱ 18,000,000 ₱ 03,000,000 ROI 15% 20% Imputed interest rate = 10% What is the residual income of Division II? Group of answer choices ₱ 0 ₱ 300,000 ₱ 900,000 ₱ 294,000
- Information for Duncan Corporation is shown below: 20X1 Net Income ₱ 400,000 Average Investment ₱1,000,000 Sales Revenue ₱2,000,000 The sales margin is... Show solution Group of answer choices 70% 40% 20% 25%Supply the missing data in the following table : Division A Division B Division C Sales P 60,000 P 75,000 P 100,000 Operating Income _______ 25,000 _______ Operating Assets 30,000 _______ P 50,000 Return on investment 15 % 10 % 20 % Minimum required rate of return 10 % _______ _______ Residual income ________ P 5,000 0 Show the solutions pls, thank you.. Using a MARR of 15%, the preferred Alternative is:TABLE P6-82 Data for Problems 6-82 through 6-85 A B C D ECapital investment $60,000 $90,000 $40,000 $30,000 $70,000Annual expenses 30,000 40,000 25,000 15,000 35,000Annual revenues 50,000 52,000 38,000 28,000 45,000Market value at EOY 10 10,000 15,000 10,000 10,000 15,000IRR ??? 7.4% 30.8% 42.5% 9.2%(a) Do nothing (b) Alt. A (c) Alt. B(d) Alt. C (e) Alt. D (f) Alt. E