Answered: XYZ Company has two divisions, A and B.…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...

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XYZ Company has two divisions, A and B. Information for each division is as follows: A B Net earnings for division P 40,000 P 260,000 Asset base for division P100,000 P1,200,000 Target rate of return 15% 18% Margin 10% 20% Weighted average cost of capital 12% 12% What is the total sales amount for B? P666,667 P800,000 P1,300,000 P1,200,000 Group of answer choices 1 2 3 4
XYZ Company has two divisions, A and B. Information for each division is as follows A B Net earnings for division P 40,000 P 260,000 Asset base for division P100,000 P1,200,000 Target rate of return 15% 18% Operating Margin (ROS) 10% 20% Weighted average cost of capital 12% 12% What is the return on investment for A? 18% 40% 20% 15%…
Selected financial data for the Photocopies Division of Elizabeth's Business Machines is as follows: Sales $8,200,000 Operating income $2,788,000 Total assets $3,280,000 Current liabilities $400,000 Required rate of return 14% Weighted average cost of capital 3% What is the Photocopier Division's residual income? Question 16 options: $459,200 $2,328,800 $3,247,200 $2,689,600
Spartans Inc. has three operating divisions: Alpha, Beta, and Gamma. Financial information for each division in displayed below.                                Alpha                 Beta                    Gamma Sales                   $525,000             $625,000               $475,000 Oper. Exp.          $465,000                   ?                     $437,000 Oper. Income       $60,000               $75,000                       ?       Inv. Assets                  ?                          ?                       $380,000 ROI                         0.2000                 0.1500                         ?       Sales Margin               ?                              ?                         0.0800 Cap. Turn                   ?                        1.25                      ?       Use the DuPont Equation to calculate the following values: Return on Investment =    Net Operating Income                       Avg. Invested Assets…
Spartans Inc. has three operating divisions: Alpha, Beta, and Gamma. Financial information for each division in displayed below.                                Alpha                 Beta                    Gamma Sales                   $525,000             $625,000               $475,000 Oper. Exp.          $465,000                   ?                     $437,000 Oper. Income       $60,000               $75,000                       ?       Inv. Assets                  ?                          ?                       $380,000 ROI                         0.2000                 0.1500                         ?       Sales Margin               ?                              ?                         0.0800 Cap. Turn                   ?                        1.25                      ?       Use the DuPont Equation to calculate the following values: Return on Investment =    Net Operating Income                       Avg. Invested Assets…
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
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.
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 ₱ 294,000
Verbo Company earned controllable margin of P125,000 on sales of P1,600,000. The division had average operating assets of P1,300,000. The company requires a return on investment of at least 8%. How much is residual income? P21,000 P104,000 P126,000 P121,000
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 4
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
Consider the following data from two divisions of a company, P and Q: Divisional P Q Sales $ 2,000,000 $ 1,100,000 Operating Income $ 800,000 $ 660,000 Investment $ 3,200,000 $ 1,760,000 If the minimum rate of return is 9%, what is Division P's residual income (RI)?

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XYZ Company has two divisions, A and B. Information for each division is as follows: A B Net earnings for division P 40,000 P 260,000