The residual income amounted to?
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- The following selected data for BC Company for 2022: Sales P 2,000,000Variable Costs 1,200,000Traceable Fixed Costs 200,000Average Invested Capital 400,000Capital Charge 15% 1. The residual income amounted to? 2. Assuming the same information in the previous item, the return on investment percentage is?The following are selected data for the division for the consumer products of ABC Corp for 2020: Sales P 10,000,000 Average invested capital 4,000,000 Net Income 400,000 Cost of Capital 8% What is the amount of residual income for the division? P 80,000 P 200,000 P 320,000 P 400,000 Group of answer choices 1 2 3 4INCOME STATEMENT Hermann Industries is forecasting the following income statement:Sales $8,000,000Operating costs excluding depr. & amort. 4,400,000EBITDA $3,600,000Depreciation & amortization 800,000EBIT $2,800,000Interest 600,000EBT $2,200,000Taxes (40%) 880,000Net income $1,320,000The CEO would like to see higher sales and a forecasted net income of $2,500,000. Assumethat operating costs (excluding depreciation and amortization) are 55% of sales and thatdepreciation and amortization and interest expenses will increase by 10%. The tax rate, whichis 40%, will remain the same. What level of sales would generate $2,500,000 in net income?
- The following are selected data for the division for the consumer products of ABC Corp for 2020: Sales P 10,000,000 Average invested capital 4,000,000 Net Income 400,000 Cost of Capital 8% What is the return on sales for the division? 4% 8% 10% 20% Group of answer choices 1 2 3 4The following are selected data for the division for the consumer products of ABC Corp for 2020: Sales P 10,000,000 Average invested capital 4,000,000 Net Income 400,000 Cost of Capital 8% What is the return on investment for the division? 2% 4% 8% 10% Group of answer choices 1 2 3 4Omar Sdn Bhd requires a return on capital of 15 percent. The following information is available for 2020: Division X Division Y Division Z Book Current Book Current Book Current Sales RM200,000 RM200,000 RM400,000 RM400,000 RM600,000 RM600,000 Income 24,000 20,000 32,000 34,000 37,500 39,000 Assets 120,000 160,000 180,000 200,000 450,000 435,000 Required: a. Compute return on investment using both book and current values for each division. (Round answer to three decimal places.) b. Compute residual income for both book and current values for each division. c. Does book value or current value provide the better basis for performance evaluation? d. Which division do you consider the most successful?
- A company requires P1,020,000 in sales to meet its net income target. Its contribution margin is 30%, and fixed costs are P180,000. What is the target net income? Group of answer choices P306,000 P234,000 P420,000 P126,000Given the following for Silver Company in 2019: revenues P5,300,000, manufacturing costs P2,200,000 (one-half fixed), and marketing and administrative costs P 2,700,000 (two-thirds variable). The contribution margin is:The following are selected data for the division for the consumer products of ABC Corp for 2020: Sales P 10,000,000 Average invested capital 4,000,000 Net Income 400,000 Cost of Capital 8% What is the asset turn-over ratio for the division? .25 times 2.5 times 8 times 10% Group of answer choices 1 2 3 4
- The following information pertains to Kem Corp. Operating Leverage 4 Fixed Costs P 30,000 Current Year Total Peso Sale P 125,000 Required: Construct the company’s contribution approach income statement and determine the net income of the company if total sales will increase by 20%.Paints Division of PorEleben, Inc. had the following operation result in 2019:Sales: P12,000,000Profit Margin: 20%Assets P15,000,000The Division is considering a P2,000,000 investment in a new project. The estimated ROI for all its operations would be 30% with the new investment. The weighted average cost of capital is 15%1. How much net income or net loss is the new project expected to contribute?2. If the manager of the division is evaluated on ROI alone, will she invest on the new project?Why?3. What would be the residual income for all its operations?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.