Q: The following selected data pertain to the belt division of Allen Corp. for last year: * Sales…
A: Ratio analysis is a method of measuring the financial position of the organization with different…
Q: Solano Company has sales of $620,000, cost of goods sold of $430,000, other operating expenses of…
A: Answer:- Return on investment meaning(ROI):- ROI is a basically a measure of an investment's…
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: Mason Corporation had $1,096,000 in invested assets, sales of $1,237,000, income from operations…
A: The residual income is the amount of profit earned even after the completion of the work that was…
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: Last year a company had sales of $400,000, a turnover of 2.4, and a return on investment of 24%.…
A: Operating income: Operating income refers to the income earned from the day-to-day operations. It is…
Q: Mason Corporation had $1,077,000 in invested assets, sales of $1,209,000, income from operations…
A: The residual income is the income the company is earning over and above what it should earn.…
Q: The Rainy Division of Seattle Corporation reported the following results from the past year.…
A: Given the following information: Sales: $900,000 Operating income: $225,000 Total assets:…
Q: Mason Corporation had $1,182,000 in invested assets, sales of $1,298,000, operating income amounting…
A: Investment turnover: This ratio gauges the operating efficiency by quantifying the amount of sales…
Q: San Francisco Sea Corp. has sales of $1,550,000, cost of goods sold of $820,000, other operating…
A: Return on investment is the ratio which indicates how much percentage of return a firm is able to…
Q: The firm has $878,000 of sales and $913.000 of total assets. The firm is operating at 93 percent of…
A: Given the following information: Sales: $878,000 Total assets: $913,000 Firm's operating capacity:…
Q: Mason Corporation had $1,046,000 in invested assets, sales of $1,280,000, operating income amounting…
A: Residual income of the business means, income over and above its, minimum desired rate of return.
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: The Holmes Division recorded operating data as follows for the past year: Sales Operating Income…
A: Minimum required rate of return is the return which companies wants and have to have earn because it…
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: (9) Mason Division had $1,176,000 in invested assets, sales of $1,252,000, income from operations…
A: Investment-Turnover Ratio shows efficiency of entity in deployment their funds to generate sales and…
Q: Mason Corporation had $1,164,000 in invested assets, sales of $1,298,000, operating income amounting…
A: Definition: Investment turnover: This ratio gauges the operating efficiency by quantifying the…
Q: 1)Blaser Corporation had $1,029,000 in invested assets, sales of $1,264,000, income from operations…
A: Return on investment = Income from operations / Invested assets
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: A firm has an enterprise value ratio (multiple) of 8.9, a profit margin of 5.6 percent, sales of…
A: Enterprise Value Multiple shows relationship between entity’s market capitalization and its earnings…
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: Vargas Corporation had $220,000 in invested assets, sales of $242,000, income from operations…
A: Rate of return on investment = income from operations / Average invested assets where, Average…
Q: Mason Corporation had $1,170,000 in invested assets, sales of $1,211,000, operating income amounting…
A: Profit margin = Operating income / Sales
Q: What is the Investment Turnover for Stevenson Corporation, given the following info: Invested Assets…
A: Investment turnover: Investment turnover is a financial ratio that measures the efficiency of a…
Q: Bouvous Corporation had the following information for 2015: Revenue $400,000 Operating expenses…
A: Net income=Revenue-Operating expenses=$400,000 - $350,000=$50,000
Q: If a company has a return of investment of 12% and a capital of ₱ 1,500,000, what is the company's…
A: Company's profit = Capital x return of investment %
Q: The Box Manufacturing Division of the Allied Paper Company reported the following results from the…
A: Return on Investment is a financial ratio that represents the value of return or gain earned on an…
Q: Briggs Company has operating income of $36,000, invested assets of $180,000, and sales of $720,000.…
A: Solution- (1) Profit margin = operating income/sales = $36000/$720000 = 5% (2) investment…
Q: Marshall Corporation had $220,000 in invested assets, sales of $242,000, operating income of…
A: Return on Investment = Net income/Average invested assets where, Average invested assets =…
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: What is the Profit Margin for Stevenson Corporation, given the following info: Invested Assets =…
A: Profit margin refers to the income earned by the company from the sale of goods and services after…
Q: Consider the information in the following table. Using the DuPont formula, calculate the rate of…
A: The DuPont formula was pioneered by the Du Pont Company. This formula considers the important…
Q: Mason Corporation had $1,104,000 in invested assets, sales of $1,285,000, operating income amounting…
A: The return on investment is a measure used by the company to calculate the percentage of earning on…
Q: Use this information for Mason Corporation to answer the question that follow. Mason Corporation had…
A:
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: A company had the following results last year: sales, $700,000; return on investment, 28%; and…
A: Operating income = sales x margin % = $700,000 x 8% = $56,000
Q: Sousa Corporation provides the following financial information: Minimum acceptable operating income…
A: Residual income means the excess of operating income over the minimum acceptable operating income.
Q: Blaser Corporation had $1,090,000 in invested assets, sales of $1,277,000, operating income…
A: Return on investment (ROI): This financial ratio evaluates how efficiently the assets are used in…
Q: A company has a capital employed of $200,000. It has a cost of capital of 12% per year. Its residual…
A: We have the following information: Capital Employed: $200,000 Cost of Capital: 12% per year…
Q: Last year a company had sales of $400,000, average operating assets of $166,667, and a return on…
A: Return on investment = net operating income for the year / average operating assets where, Average…
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…
Q: Profit flows from a company’s operations during a 3 year period were: $185,000; 230,900; 399,000;…
A: Present value of annuity is the current value of the future payments that are calculated using the…
-
Mason Corporation had $1,124,000 in invested assets, sales of $1,284,000, operating income amounting to $238,000, and a desired minimum return on investment of 13%.
The profit margin for Mason Corporation is
a.21.2%b.18.5%c.13.0%d.87.5%
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000, 000. What is the sales margin?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%During the current year, Plainfield Manufacturing earned income of $845,000 from total sales of $9,350,000 and average capital assets of $13,500,000. Using the sales margin from the previous exercise, what is the total ROI for the company during the current year?
- Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectivelyThe 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.During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000,000. A. Based on this information, calculate asset turnover. B. Using the sales margin from the previous exercise, what is the total ROI for the company during the current year?
- Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.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).Macon Mills is a division of Bolin Products. Inc. During the most recent year, Macon had a net income of $40 million. Included in the income was interest expense of $2,800,000. The companys tax rate was 40%. Total assets were $470 million, current liabilities were $104,000,000, and $72,000,000 of the current liabilities are noninterest bearing. What are the invested capital and ROI for Macon?
- 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.The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, a days’ sales outstanding of 36.5 days (based on a 365-day year), total current assets of $810,000, and cash and marketable securities of $120,000. What were Kretovich’s annual sales?Payne Products had $1.6 million in sales revenues in the most recent year and expects sales growth to be 25% this year. Payne would like to determine the effect of various current assets policies on its financial performance. Payne has $1 million of fixed assets and intends to keep its debt ratio at its historical level of 60%. Payne’s debt interest rate is currently 8%. You are to evaluate three different current asset policies: (1) a restricted policy in which current assets are 45% of projected sales, (2) a moderate policy with 50% of sales tied up in current assets, and (3) a relaxed policy requiring current assets of 60% of sales. Earnings before interest and taxes are expected to be 12% of sales. Payne’s tax rate is 40%. What is the expected return on equity under each current asset level? In this problem, we have assumed that the level of expected sales is independent of current asset policy. Is this a valid assumption? Why or why not? How would the overall risk of the firm vary under each policy?
