Protax income Allocated costs() Labor expens Research and development (uncontrollable) Depreciation expense Net Income) Cost of goods sold Marketing costs (not) „Administrative expense Income tax expense (21% of pretax income) Sales ✔ Cost of Goods Sold Gross Prof✔ Deprec ✓ Administrative Expense✔ Other Expenses ✓ Allocated Costs (Uncontrollable) ✓ Research and Development (Uncontrollable) Marketing Costs (Uncontrollable) ✔ 7 Net Income - ✓ $2,030 41,580 190,000 310 18,000 7 A. Prepare the income statement using the above information. Round your answers to the nearest dollar. BDS Enterprises Income Statement For the Year Ended Dec. 31, 20xx 119,700 1,250 7 800 690 330 ✓ Total Expens Pretax Income ✔ V Income Tax Expense (21% of Pretax Income)✔ 190,000 119,700 41,580 18,000✔ 5,300 ✓ 300 ✓ 1,113 4.387 ✓

Protax income Allocated costs() Labor expens Research and development (uncontrollable) Depreciation expense Net Income) Cost of goods sold Marketing costs (not) „Administrative expense Income tax expense (21% of pretax income) Sales ✔ Cost of Goods Sold Gross Prof✔ Deprec ✓ Administrative Expense✔ Other Expenses ✓ Allocated Costs (Uncontrollable) ✓ Research and Development (Uncontrollable) Marketing Costs (Uncontrollable) ✔ 7 Net Income - ✓ $2,030 41,580 190,000 310 18,000 7 A. Prepare the income statement using the above information. Round your answers to the nearest dollar. BDS Enterprises Income Statement For the Year Ended Dec. 31, 20xx 119,700 1,250 7 800 690 330 ✓ Total Expens Pretax Income ✔ V Income Tax Expense (21% of Pretax Income)✔ 190,000 119,700 41,580 18,000✔ 5,300 ✓ 300 ✓ 1,113 4.387 ✓

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 3PA: The income statement comparison for Forklift Material Handling shows the income statement for the...

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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.
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.
Using the following data, estimate the new Return on Investment if there is a 6% increase in sales - with average operating assets as the base. Sales $2,640,795 Contribution margin 38% Controllable fixed costs 248,297 Average operating assets $4,486,486 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.
Using the following data, estimate the new Return on Investment if there is a 13% decrease in the average operating assets - with the new average operating assets as the base. Sales $3,516,519 Contribution margin 39% Controllable fixed costs 300,215 Average operating assets $4,964,961 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.
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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.
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The following data relate to the Motor Division of Young Company:Sales P10,000,000Variable costs 3,000,000Direct fixed costs 5,000,000Invested capital 8,000,000Allocated actual interest costs 800,000Capital charge 12%Question: What is the divisional return on investment?
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