Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Chapter 24, Problem 12E
To determine
Compute the missing terms.
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Determining missing items in return on investment computation
Determining missing items in return on investment computation
One item is omitted from each of the following computations of the return on investment:
Return on Investment
=
Profit Margin
x
Investment Turnover
27 %
=
10 %
x
(a)
(b)
=
16 %
x
0.75
24 %
=
(c)
x
1.5
14 %
=
20 %
x
(d)
(e)
=
15 %
x
1.8
Determine the missing items identified by the letters as shown above. If required, round your answers to two decimal places.
(a)
fill in the blank 1
(b)
fill in the blank 2 %
(c)
fill in the blank 3 %
(d)
fill in the blank 4
(e)
fill in the blank 5 %
Determining missing items in return on investment computation
One item is omitted from each of the following computations of the return on investment:
Return on Investment
=
Profit Margin
x
Investment Turnover
24 %
=
10 %
x
(a)
(b)
=
24 %
x
0.75
12 %
=
(c)
x
1.5
16 %
=
20 %
x
(d)
(e)
=
15 %
x
2.2
Chapter 24 Solutions
Financial And Managerial Accounting
Ch. 24 - Differentiate between centralized and...Ch. 24 - Differentiate between a profit center and an...Ch. 24 - Weyerhaeuser Co. (WY) developed a system that...Ch. 24 - What is the major shortcoming of using operating...Ch. 24 - In a decentralized company in which the divisions...Ch. 24 - Prob. 6DQCh. 24 - (a) Explain how return on investment might lead a...Ch. 24 - Prob. 8DQCh. 24 - When is the negotiated price approach preferred...Ch. 24 - Prob. 10DQ
Ch. 24 - Budgetary performance for cost center Vinton...Ch. 24 - Support department allocations The centralized...Ch. 24 - Prob. 3BECh. 24 - Profit margin, investment turnover, and ROI Briggs...Ch. 24 - Residual income Obj. The Commercial Division of...Ch. 24 - Transfer pricing The materials used by the...Ch. 24 - Budget performance reports for cost centers...Ch. 24 - The following data were summarized from the...Ch. 24 - Prob. 3ECh. 24 - Prob. 4ECh. 24 - Service department charges In divisional income...Ch. 24 - Varney Corporation, a manufacturer of electronics...Ch. 24 - Horton Technology has two divisions, Consumer and...Ch. 24 - Rocky Mountain Airlines Inc. has two divisions...Ch. 24 - Championship Sports Inc. operates two divisionsthe...Ch. 24 - The operating income and the amount of invested...Ch. 24 - The operating income and the amount of invested...Ch. 24 - Prob. 12ECh. 24 - The condensed income statement for the Consumer...Ch. 24 - Prob. 14ECh. 24 - Data are presented in the following table of...Ch. 24 - Prob. 16ECh. 24 - Materials used by the Instrument Division of...Ch. 24 - Prob. 18ECh. 24 - GHT Tech Inc. sells electronics over the Internet....Ch. 24 - Profit center responsibility reporting for a...Ch. 24 - Divisional income statements and return on...Ch. 24 - Effect of proposals on divisional performance A...Ch. 24 - Divisional performance analysis and evaluation The...Ch. 24 - Prob. 6PACh. 24 - Budget performance report for a cost center The...Ch. 24 - Profit center responsibility reporting for a...Ch. 24 - Divisional income statements and return on...Ch. 24 - Effect of proposals on divisional performance A...Ch. 24 - Prob. 5PBCh. 24 - Prob. 6PBCh. 24 - Kelly Kitchens operates both franchised and...Ch. 24 - Panera Bread Company (PNRA) operates over 2,000...Ch. 24 - Papa Johns International, Inc. (PZZA), operates...Ch. 24 - Panera Bread Company (PNRA) operates over 2,000...Ch. 24 - McDonalds Corporation (MCD) operates company-owned...Ch. 24 - Prob. 1TIFCh. 24 - Prob. 2TIFCh. 24 - Communication The Norse Division of Gridiron...Ch. 24 - The three divisions of Yummy Foods are Snack...Ch. 24 - Last Resort Industries Inc. is a privately held...Ch. 24 - Sara Bellows, manager of the telecommunication...Ch. 24 - Most firms allocate corporate and other support...Ch. 24 - Prob. 3CMACh. 24 - Prob. 4CMA
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Similar questions
- The third step for making a capital investment decision is to establish baseline criteria for alternatives. Which of the following would not be an acceptable baseline criterion? A. payback method B. accounting rate of return C. internal rate of return D. inventory turnoverarrow_forwardDetermining Missing Items in Return Computation One item is omitted from each of the following computations of the return on investment: Rate of Return on Investment = Profit Margin x Investment Turnover 19 % = 10 % x (a) (b) = 28 % x 0.75 15 % = (c) x 1.5 16 % = 20 % x (d) (e) = 15 % x 1.8 Determine the missing items identified by the letters as shown above. If required, round your answers to two decimal places. (a) (b) % (c) % (d) (e) %arrow_forwardDetermining Missing Items in Return Computation One item is omitted from each of the following computations of the return on investment: Rate of Return on Investment = Profit Margin x Investment Turnover 25 % = 10 % x (a) (b) = 28 % x 0.75 33 % = (c) x 1.5 14 % = 20 % x (d) (e) = 15 % x 1.6 Determine the missing items identified by the letters as shown above. If required, round your answers to two decimal places. (a) fill in the blank 1 (b) fill in the blank 2% (c) fill in the blank 3% (d) fill in the blank 4 (e) fill in the blank 5%arrow_forward
- Determining Missing Items in Return Computation One item is omitted from each of the following computations of the return on investment: Rate of Returnon Investment = Profit Margin x InvestmentTurnover 13.2% = 6% x (a) (b) = 10% x 1.80 10.5% = (c) x 1.50 15% = 5% x (d) (e) = 12% x 1.10 Determine the missing items identified by the letters as shown above. If required, round your answers to two decimal places. (a) fill in the blank 1 (b) fill in the blank 2% (c) fill in the blank 3% (d) fill in the blank 4 (e) fill in the blank 5%arrow_forwardThe following is a disadvantage of ARR investment appraisal method (select one): A. multiple or no solutions B. does not take into account time value of money C. easy to explain D. management performance is rarely evaluated based on ARRarrow_forwardWhich machine should be selected using the Payback period method? Machine AMachine B Which machine should be selected using the Accounting rate of return based on the net investment method? Machine AMachine B Which machine should be selected using the Internal rate of return method? Machine AMachine Barrow_forward
- Match each of the following terms with the best definition. A. Theory of constraints B. Sunk cost C. Differential analysis D. Opportunity cost - Strategy that focuses on reducing bottlenecks. - Revenue forgone from an alternative use of an asset. - Not relevant to future decisions. - Evaluation of how income will change based on an alternative course of action.arrow_forward__________ considers the impact of changing one or more inputs or assumptions on the resulting answer (output) of an analysis. a.Sensitivity analysis b.Capital rationing c.Expected value analysis d.The net present value methodarrow_forwardExplain what is meant by Accounting Rate of Return (ARR) and Net Present Value (NPV) in the context of investment appraisal. Discuss at least TWO advantages and TWO disadvantages of each method.arrow_forward
- Which of the following is not a measure that management can use in evaluating and controlling investment center performance? a.residual income b.negotiated price c.income from operations d.rate of return on investmentarrow_forwardTrue or false: The levels of fixed-cost assets and funds that management selects affect the variability of returnsarrow_forwardIn making a short-term special decision, which of the following is MOST important? a. Use a conventional absorption costing method b. Focus on the total cost c. Separate variable and fixed costs d. Discount cash flow to their present valuesarrow_forward
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