Requirement 2: Revise the data in your worksheet as follows: 1 Chapter 11: Applying Excel 2 3 4 A Data Sales Net operating income 5 6 Average operating assets 7 ROI Minumum required rate of return If your formulas are correct, you should get the correct answers to the following questions. a. What is the ROI? Residual income B $ 24,000,000 $ 3,360,000 $ 6,000,000 24% b. What is the residual income? (Negative amount should be indicated by a minus sign.) c. Why is the residual income positive? The ROI exceeds the minimum required rate of return

Requirement 2: Revise the data in your worksheet as follows: 1 Chapter 11: Applying Excel 2 3 4 A Data Sales Net operating income 5 6 Average operating assets 7 ROI Minumum required rate of return If your formulas are correct, you should get the correct answers to the following questions. a. What is the ROI? Residual income B $ 24,000,000 $ 3,360,000 $ 6,000,000 24% b. What is the residual income? (Negative amount should be indicated by a minus sign.) c. Why is the residual income positive? The ROI exceeds the minimum required rate of return

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Case 1: ROI You are comparing the performance of two (2) separate divisions, segments A and B, using ROI Analysis. A B Sales P100,000.00 P500,000.00 Operating Expenses 30,000.00 300,000.00 Net Operating income 70,000.00 200,000.00 Average Operating Assets 10,000.00 40,000.00 Required: Using ROI Analysis, which segment is performing better? To answer this question, you need to: Compute the ROI of each segment and Compute the components of ROI of each segment
XY Company provided you the following data: Average operating assets 120,000 Margin on sales 15% Minimum required rate of return 20% Return on investment 25% Sales 300,000 Turnover 2.50 What is the residual income? (Correct ans: 21,000) need solution
Golden Goodness (GG) has an investment center that had the following data: Operating Income $28,000 Sales $350,000 Invested assets $175,000 PMB has set a minimum acceptable rate of return at 14%. Using the information, answer the following questions. You must include what type of number it is (%, $, etc.) Part A: What is the residual income? Part B: Show calcualtions on how you got answer
4\ Management has at its disposal the following information: Price Information : P= 2400-30Q The profit-maximizing price: P=240 Dollar Find the Profit-maximizing quantity.
CH11_HW_QA3_LA Required 1: Compute the company’s return on investment (ROI) for the period using the ROI formula stated in terms of margin and turnover. (Round your intermediate calculations and final answer to 2 decimal places.) Margin % Turnover ROI % Required 2: Using Lean Production, the company is able to reduce the average level of inventory by $95,000. (The released funds are used to pay off short-term creditors.) (Round your intermediate calculations and final answers to 2 decimal places.) Effect Margin % Turnover ROI % Required 3: The company achieves a cost savings of $14,000 per year by using less costly materials. (Round your intermediate calculations and final answers to 2 decimal places.) Effect Margin % Turnover ROI % Required 4: The company issues bonds and uses the proceeds to…
Required Supply the missing information in the following table for Vernon Company. (Do not round intermediate calculations. Round "ROI" answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).) Sales $369,600 ROI % Operating assets Operating income Turnover 2.1 Residual income Operating profit margin 14 % Desired rate of return 17 %
Golden Goodness (GG) has an investment center that had the following data: Operating Income $28,000 Sales $350,000 Invested assets $175,000 PMB has set a minimum acceptable rate of return at 14%. Using the information, answer the following questions. You must include what type of number it is (%, $, etc.) Part A: What is the profit margin? Part B: What is the investment turnover? Part C: What is the return on investment? Part D: What is the residual income? Part E: Explain each of the calculations you just performed (a-d).
Data Sales $25,000,000 Net operating income $3,000,000 Average operating assets $9,000,000 Minimum required rate of return 25% Enter a formula into each of the cells marked with a ? below Review Problem: Return on Investment (ROI) and Residual Income Compute the ROI Margin ? Turnover ? ROI ? Compute the residual income Average operating assets ? Net operating income ? Minimum required return ? Residual income ?
1. Now change all of the dollar amounts in the data area of your worksheet so that it looks like this: Chapter 1: Applying Excel Data Sales $59,500 Variable costs: Cost of goods sold $34,000 Variable selling $3,400 Variable administrative $3,200 Fixed costs: Fixed selling $2,500 Fixed administrative $1,500 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the gross margin now? (b) What is the net operating income now? (c) What is the contribution margin now?
Chapter 1: Applying Excel: Exercise (Part 2 of 2) 1. Now change all of the dollar amounts in the data area of your worksheet so that it looks like this: A B 1 2 3 4 5 6 7 8 9 10 11 Chapter 1: Applying Excel Data Sales $18,500 Variable costs: Cost of goods sold $12,000 Variable selling $1,200 Variable administrative $1,000 Fixed costs: Fixed selling $2,500 Fixed administrative $1,500 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the gross margin now? (b) What is the net operating income now? (c) What is the contribution margin now? 2. Suppose that sales are 12% higher as shown below: A B 1 2 3 4 5 6 7 8 9 10 11 Chapter 1: Applying Excel Data Sales $20,720 Variable costs: Cost of goods sold $13,440 Variable selling $1,344 Variable administrative $1,120 Fixed costs: Fixed…
Q23 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%.
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