Excel Applications for Accounting Principles
4th Edition
ISBN: 9781111581565
Author: Gaylord N. Smith
Publisher: Cengage Learning
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The Excel worksheet form that appears below is to be used to recreate the Review Problem pertaining to the Magnetic Imaging Division of Medical Diagnostics, Inc. Download the workbook containing this form from Connect, where you will also receive instructions about how to use this worksheet form.
You should proceed to the requirements below only after completing your worksheet.
Required:
1. Check your worksheet by changing the average operating assets in cell B6 to $8,000,000. The ROI should now be 38% arid the residual income should now be $1,000,000. If you do not get these answers, find the errors in your worksheet and correct them.
Explain why the ROI and the residual income both increase when the average operating assets decrease.
2. Revise the data in your worksheet as follows:
a. What is the ROI?
b. What is the residual income?
c. Explain the relationship between the ROI and the residual income?
I'm looking for the pattern that needs to be entered for the worksheet. Some of the answers come from a the blanks above - I have them - just need to know which items. Seems that the total units can't be more than 75,000 but when I add in the end of month inventory the units seem to be higher.
In the New Company File Assistant, before pressing the Next button in the 'Create your company file' window, Isabella wants to confirm some of the company settings you selected when creating the company file in MYOB.
Isabella asks you to select the correct options that appear throughout the New Company File Assistant that correspond to the company settings required for Hi-Fi Way in MYOB:
12 accounting periods and 'Other' as the industry classification of the business
June as the conversion month and a financial year starting in January
12 accounting periods and 'Retail Business, Other' as the industry classification of the business
January as the conversion month and a financial year ending in July
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