QUESTION 6 The Millard Division's operating data for the past two years are provided below: Year 1 Year 2 36% Return on investment 12% Net operating income? $360,000 Turnover Margin Sales ? ? O $1,388,889 O $1,080,000 O$1,000,000 $1,200,000 3 ? $3,200,000 ? Millard Division's margin in Year 2 was 150% of the margin in Year 1. The average operating assets for Year 2 were:
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- Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of $30,000, and invested assets of $600000. What is the return on investment for Division A? A. 20% B. 25% C. 33% D. 40%Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the following income statement for the last year: At the beginning of last year, Elway had 28,300,000 in operating assets. At the end of the year, Elway had 23,700,000 in operating assets. Required: 1. Compute average operating assets. 2. Compute the margin and turnover ratios for last year. (Note: Round the answer for margin ratio to two decimal places.) 3. Compute ROI. (Note: Round answer to two decimal places.) 4. CONCEPTUAL CONNECTION Briefly explain the meaning of ROI. 5. CONCEPTUAL CONNECTION Comment on why the ROI for Elway Company is relatively high (as compared to the lower ROI of a typical manufacturing company).The Millard Division's operating data for the past two years are provided below: Year 1 Year 2 Return on investment 10% 24% Net operating income ? $ 740,000 Turnover ? 4 Margin ? ? Sales $ 3,390,000 ? Millard Division's margin in Year 2 was 120% of the margin in Year 1. The net operating income for Year 1 was: Multiple Choice $203,400 $406,800 $169,500 $370,000
- The Millard Division's operating data for the past two years are provided below: Year 1 Year 2 Return on investment 12 % 36 % Net operating income ? $ 660,000 Turnover ? 3 Margin ? ? Sales $ 3,350,000 ? Millard Division's margin in Year 2 was 150% of the margin in Year 1. The net operating income for Year 1 was: (Round intermediate percentage computations to the nearest whole percent.) Multiple Choice $440,000 $268,000 $402,000 $804,000The Millard Division's operating data for the past two years are provided below: Year 1 Year 2 Return on investment 12% 36% Net operating income ? $ 360,000 Turnover ? 3 Margin ? ? Sales $ 3,200,000 ? Millard Division's margin in Year 2 was 150% of the margin in Year 1. The average operating assets for Year 2 were?The Millard Division's operating data for the past two years are provided below: Year 1 Year 2 Return on investment 10% 24% Net operating income ? $ 560,000 Turnover ? 4 Margin ? ? Sales $ 3,300,000 ? Millard Division's margin in Year 2 was 120% of the margin in Year 1. The sales for Year 2 were: Multiple Choice $3,300,000 $9,333,333 $9,666,666 $2,333,333
- The Millard Division's operating data for the past two years are provided below: Year 1 Year 2 Return on investment 15 % 20 % Net operating income ? $ 400,000 Turnover ? 2 Margin ? ? Sales $ 3,220,000 ? Millard Division's margin in Year 2 was 100% of the margin in Year 1. The sales for Year 2 were:QUESTION 26 BMI’s East Division has a cost of capital of 20 percent. Selected financial information for the first year of business follows. Sales revenue $ 1,800,000 Income 340,000 Investment (beginning of year) 1,800,000 Current liabilities (beginning of year) 240,000 R&D expendituresa 600,000 a R&D (Research and Development) is assumed to benefit three years. All R&D is spent at the beginning of the year. East Division’s EVA (economic value added) is: A. $356,000 B. $260,000 C. $295,000 D. $108,000 E. $308,000Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of capital of 15 percent. Selected financial information (in thousands of dollars) for the first year of business follows: East West Sales revenue $ 1,000 $ 5,000 Income 200 390 Investment (beginning of year) 2,000 3,000 Current liabilities (beginning of year) 200 200 R&D expendituresa 500 400 aR&D is assumed to benefit two periods. All R&D is spent at the beginning of the year. Required: a-1. Evaluate the performance of the two divisions assuming BMI uses return on investment (ROI).
- 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 ₱ 294,000The Dry Wall Division reports the following operating data for the past two years: Year 1 Year 2 Margin 12 % ? Asset Turnover 3.0 2.0 Average operating assets ? $ 152,500 Net operating income $ 41,900 ? Stockholders’ equity $ 82,500 $ 122,500 Sales ? ? The return on investment at the Dry Wall Division was exactly the same in Year 1 and Year 2.Net operating income in Year 2 amounted to: Multiple Choice $41,900. $30,000. $36,600. $54,900.Provide the missing information (A-H) in the table. Use the formulas learned in Chapter 10. (Round to two decimal places.)SHOW ALL CALCULATIONS. ROUND MARGIN, TURNOVER and ROI TO TWO (2) DECIMAL PLACES. Alpha Division Beta Division Delta Division Sales A $420,000 G Operating assets B D $1,000,000 Net operating income $800,000 $21,000 $250,000 Margin 0.16 E 0.10 Turnover C F 2.50 Return on investment (ROI) 20.00% 15.00% H