If IT Company has a 10% ROS, income of P5,000, and an investment turnover of 4 times, divisional investment is A.P5,000 B.P12.500 C.P20,000 D.P50,000
Q: Atom Company's operating income for selling 100,000 units is $60,000. Assume that Atom Company has…
A: The provided information are: EBIT = $60,000 Interest expense (I) = $18,000
Q: The following information is available for Multicomm Limited : Asset/Sales is 0.9, change in sales…
A: The internally generate funds can be calculated as per AFN equation
Q: A division with capital employed of sh.400, 000 currently earns an ROI of 22%. It can make an…
A: Current earnings = Capital employed x Current ROI = 400,000 x 22% = 88,000…
Q: requires à minimum return on its investments of 5%, what is their Pesidual income? * NUBD Co. has…
A: In managerial accounting, Return On Investment explains how much operating income a business firm…
Q: ,000 resulting in an operating income of $183,000. Average invested assets total $801,000. If sales…
A: A company's revenue is compared to its debt and equity in the investment turnover ratio. The ratio…
Q: 000,00 Simple ROI and Residual Income Calculations: Consider the following data: Division Y Invested…
A: Simple ROI is calculated by dividing the income by invested capital, and Residual income is…
Q: Blaser Corporation had $1,092,000 in invested assets, sales of $1,214,000, income from operations…
A: Return on investment = Income from operation / Average investment where, Average investment =…
Q: Assume that Major Manuscripts, Inc. is currently operating at 95 percent of capacity and that sales…
A: The process of creating, executing, and managing a budget is known as budgeting. Budget planning and…
Q: Now suppose a firm has the following information: $7 million insales, $4 million of costs of goods…
A: SALE = 7,000,000COST OF GOODS SOLD = 4,000,000OTHER EXPENSES = 500,000
Q: An Investment center has sales of $30,000,000, income of $9,000,000, and average assets of…
A: Residual income is calculated as excess return over the required return on assets
Q: Howard has an ROI of 26% based on revenues of $408,000. The investment turnover is 2. What is the…
A: Residual Income: When used in a business context, the term "residual income" refers to the amount of…
Q: Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last…
A: Capital turnover is the ratio of sales to net capital.Total sales=$14,000,000. Total Assets=1500,000…
Q: Mason Corporation had $1,152,000 in invested assets, sales of $1,279,000, operating income amounting…
A: INVESTMENT TURNOVER : = NET SALES / ( EQUITY + DEBT ) = NET SALES / INVESTED ASSETS
Q: During the past twelve months, the XYZ Corporation had an operating income of P3,920,000. What is…
A: The net income is the net profit of the company earned during the period. The net income includes…
Q: The Company has debtors of Rs. 6,00,000, Credit period is 2 months. PV ratio is 80%. Rate of return…
A: PV ratio = 80% Variable cost ratio = 100 - PV ratio = 100 - 80 = 20%
Q: Omar Sdn Bhd requires a return on capital of 15 percent. The following information is available for…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of capital of 15…
A: Ratio analysis is a method of measuring the financial position of the organization with different…
Q: residual income
A: Residual income = Average operating assets * (Return on investment - Required rate of minimum return…
Q: Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last…
A: Sale margin means the percentage of profit on sales i.e. how much percentage of sale is our profits.…
Q: The northern division of Aussie Estates has reported a profit of $4 million. Divisional invested…
A: Profit = $ 4 million Invested capital = $ 2.5 million Interest rate = 12%
Q: Avocado Company has an operating income of $100,800 on revenues of $1,013,000. Average invested…
A: Return on Investment is a ratio that shows the relationship between net profit and the cost of…
Q: Mason Storm Inc. has a profit margin of 16% based on revenues of $400,000 and an investment turnover…
A: Residual income is the income which is in excess of the net operating income less a charge of…
Q: Sam Division reported a residual income of P200,000 for the year just ended. The division had…
A: Residual income = Net operating income - invested capital x required rate of return required rate of…
Q: Humphrey Hotels’ operating income (EBIT) is $40 million. The company’s times interest earned (TIE)…
A: Return on Assets is the ratio that shows the profitability of the assets of the company which means…
Q: Mason Corporation had $1,164,000 in invested assets, sales of $1,240,000, income from operations…
A: The investment turnover ratio measures the ability of an enterprise to generate revenue with the…
Q: ast year Triangular Resources earned $5.4 million in net operating income and had an operating…
A: The total investment in sales can be calculated by combining the formulas of operating profit margin…
Q: Clydesdale Company has sales of $4,500,000, invested assets of $2,000,000, and operating expenses of…
A: First, compute the operating income as shown below: Operating income = Sales - Operating expense…
Q: Humphrey Hotels' operating income (EBIT) is $40 million. The company's times interest earned (TIE)…
A: Given: EBIT $40 million Times interest earned(TIE) 8 times Tax rate 40% Basic Earning…
Q: ABC Company has sales of $500,000, COGS of $250,000, operating expenses of $200,000, net income of…
A: The times interest earned ratio is calculated as EBIT or operating income divided by Interest…
Q: NUBD Division reported a residual income of P200,000 for the year just ended. The divisi had…
A: Solution: Target Income = Income earned - residual income = 1000000 - 200000 = 800,000
Q: Killian Corp. has a residual income of $36,000 on invested assets of $451,000. If the hurdle rate is…
A: The word "residual income" refers to money earned after the task that generates income has been…
Q: Mason Corporation had $1,027,000 in invested assets, sales of $1,215,000, operating income amounting…
A: Investment turnover: The investment turnover ratio compares the revenues produced by a business to…
Q: Omar Sdn Bhd requires a return on capital of 15 percent. The following information is available for…
A: Note: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…
Q: The following information pertains to Travis Concrete: Sales revenue $2,000,000 700,000 Gross margin…
A: Lets understand the basics. Capital turnover ratio indicates how well company is managing…
Q: Red Company has a profit margin of 15 percent on sales of $20,000,000. If the firm has a debt of…
A: Solution:- The return on Total Assets ratio measures how much net income the company earns on its…
Q: A firm sells 500,000 widgets at $40 each, the cost of the widgets is $25 each, expected general and…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: Panther Incorporated has operating income of $300,000, a sales margin of 5%, and a capital turnover…
A: Capital turnover rate: It implies to the rate at which the turnover is generated from making use of…
Q: If Division C has a 10% return on sales, income of $10,000, and an investment turnover of 4 times,…
A: Sales = $10,000 / 10% = $100,000 Investment = $100,000 / 4 = $25,000
Q: Use this information for Mason Corporation to answer the question that follow. Mason Corporation had…
A:
Q: A company has a capital employed of P 200,000. It has a cost of capital of 12% per year. Its…
A: Return on investment is the ratio that shows the percentage return earned on the investment made by…
Q: Mason Corporation had $1,030,000 in invested assets, sales of $1,283,000, operating income amounting…
A: Ratio analysis is a method of measuring the financial position of the organization with different…
Q: The manager of Stock Division projects the following for next year: Sales $185,000 $60,000 $375,000…
A: Hey there, Since multiple questions are posted only the first question will be answered. Kindly…
Q: Humphrey Hotels’ operating income (EBIT) is P40 million. The company’s times interest earned (TIE)…
A: In terms of accountancy, assets are the business items which provides benefit over a long period of…
Q: Mason Corporation had $1,162,000 in invested assets, sales of $1,265,000, operating income amounting…
A: The profit margin is evaluated after dividing the net income as a numerator by the total sales as a…
If IT Company has a 10% ROS, income of P5,000, and an investment turnover of 4 times, divisional investment is
A.P5,000
B.P12.500
C.P20,000
D.P50,000
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- If current assets are $100,000 and current liabilities are $42,000, what is the working capital? A. 200 percent B. 50 percent C. 2.0 D. $58,000Assume that a division of MN Company has a 10% return on sales, income of $10,000, and an investment turnover of 4 times, divisional investment is 1. $10,000 2. $25,000 3. $40,000 4. $100,000if 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% P8,000,000
- A company has operating income of $300,000, revenues of $1,500,000, total assets of $2,000,000 and an ROI of 15%. To improve the ROI, to increase ROI to 20%, which of the following investment turnovers would need to be achieved? A. .75 B.1.5 C. 2 D.1A Company is generating $10M EBITDA at exit with an exit multiple of 15X. There is a 15% Management Rollover Ownership. Initial Sponsor Equity Was $35M. What is my CoC return? O 3.6X 4.3X 4.0X 2.6XHumphrey Hotels’ operating income (EBIT) is $40 million. The company’s times interest earned (TIE)ratio is 8.0, its tax rate is 40 percent, and its basic earning power (BEP) ratio is 10 percent. What is thecompany’s return on assets (ROA)?
- Barrera 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%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.Last year Mocha Java, Incorporated had an ROA of 10 percent, a profit margin of 5 percent, and sales of $25 million. What is Mocha Java's total assets? Multiple Choice $0.125 million $1.25 million $12.5 million $12 million
- F Company has revenues of P1,500,000 resulting in an operating income of P105,000. Average invested assets total P750,000; the cost of capital is 10%. Return on investment is? A. 7% B. 10% C. 14% D. 60%Division Y has generated sales revenue of $260,000 and achieved operating income of $18,500 using $20,000 of invested assets. If management desires a minimum rate of return of 10%, the profit margin would be _____. a.14.4% b.19.5% c.7.1% d.10.2%Humphrey Hotels’ operating income (EBIT) is P40 million. The company’s times interest earned (TIE) ratio is 8.0, its tax rate is 40 percent, and its basic earning power (BEP) ratio is 10 percent. What is the company’s return on assets (ROA)?
