Given the following data: 1. Return on investment ROI).. 2. Sales............. 3. Average operating assets............ 4. Minimum required rate of return...... 5. Margin...... "' D Re .15% P240,000 .P120,000 12% .7.50%
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- The income statement comparison for Rush Delivery Company 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 ROI. Was the decision to invest additional assets in the company successful? Explain. D. Assuming an 8% cost of capital, calculate the RI for each year. Explain how this compares to your findings in part C.Calculate the residual income with the following data: Controllable margin $202,596 Minimum Rate of Return 11% Average Operating Assets $3,092,235 Round to the nearest whole dollar, no decimal places. Note: Controllable margin is the same as net income for a segment with control over the costs. Minimum rate of return is the same as the cost of capital.Refer to the income statements in requirement 1 above. For both current operations and the proposed new operations, compute (a) the degree of operating leverage, (b) the break-even point in dollars, and (c) the margin of safety in both dollar and percentage terms.
- If a company reports profit margin of 30.1% and investment turnover of 1.60 for one of its investment centers, the return on investment must be: Multiple Choice 18.81%. 48.16%. 31.70%. 28.50%. 5.32%.3. Compute Project Y’s accounting rate of return. The numerator drop down options are: accounts receivable, annual income, average investment, average total assets, cost of goods sold, current assets, current liabilities, net sales, total assets The denominator dropdown options are: accounts receivable, annual income, average investment, average total assets,3. Based on segment margin and average assets, compute the profit margin4. Based on segment margin and average assets, compute the asset turnover5. Based on segment margin and average assets, compute the ROI.
- Assume the following ratios areconstant: Total asset turnover 2.8Profit margin 6.8 % Equitymultiplier 2 Payout ratio 30 %What is the sustainable growthrate? (Do not round intermediate Training calc2. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment for each division. Round percentages to one decimal place and the investment turnover to two decimal places.AB Division for National Company has a rate of return on investment of 28% and an investment turnover of 1.4. What is the profit margin?
- Consider the following information: ROI = 18.0%, Assets = $30,000, and Sales = $45,000. Use the DuPont formula to compute "margin."Determining missing items in return on investment computation One item is omitted from each of the following computations of the return on investment: Return on Investment = Profit Margin x Investment Turnover 24 % = 10 % x (a) (b) = 24 % x 0.75 12 % = (c) x 1.5 16 % = 20 % x (d) (e) = 15 % x 2.2Profit Margin, Investment Turnover, and ROI Cash Company has income from operations of $43,578, invested assets of $269,000, and sales of $726,300. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin % b. Investment turnover c. Return on investment %