Assume a company reported the following results:SalesVariable expensesContribution marginFixed expensesNet operating income$ 400,000260,000140,00040,000100,000Average operating assets$ 500,000If the company's minimum required rate of return on average operating assets is 16%, its residual income would be:Multiple ChoiceО$20,000.$21,000.$22,000.$23,000.

Step 1: Understanding meaning of residual income:- Residual income is a income earned over and above…

Answered: Assume a company reported the following…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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The following data are taken from recent financial statements of Nike, Inc. (NKE) (in millions): Year 2 Year 1 Revenues (sales) $32,376 $30,601 Operating income 4,502 4,175 a. Determine the amount of change (in millions) and percent of change in operating income from Year 1 to Year 2. Round to one decimal place. Operating income $fill in the blank 1 fill in the blank 2% b. Determine the percentage relationship between operating income and sales for Year 2 and Year 1. Round to one decimal place. Year 1 fill in the blank Year 2 fill in the blank
Calculate the residual value of an oven in a bakery, whose installed cost is $40000. The machine is depreciated for 5 years at the rate of 20% per annum using the reducing balance method. Please show all working Question 1Answer a. $13107.2 b. $32000 c. $8000 d. $26892.8
A loan of $10,500 was given at an interest rate of 4% payable at the end of the fifth year. Find the continuous compound amount to be paid back.
If a lender charges 12% interest, compounded quarterly, what effective annual interest rate is the lender charging?
Tasty Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows: Des Moines Cedar Rapids Total present value of net cash flow $325,420 $339,450 Amount to be invested (307,000) (365,000) Net present value $18,420 $(25,550) a. Determine the present value index for each proposal. Round your answers for the present value index to two decimal places. Des Moines Cedar Rapids Total present value of net cash flow $fill in the blank 1 $fill in the blank 2 Amount to be invested $fill in the blank 3 $fill in the blank 4 Present value index fill in the blank 5 fill in the blank 6 b. Which location does your analysis support? (If both present value indexes are the same, either location will grade as correct.), because the net present value index is 1.
Consider each of the after-tax cash flows shown in the table below. Suppose that projects B and C are mutually exclusive. Suppose also that the required service period is eight years and that the company is considering leasing comparable equipment with an annual lease expense of $3,000, payable at the end of each year for the remaining years of the required service period. Which project is a better choice at 15%? Click the icon to view the cash flows for the projects. Click the icon to view the interest factors for discrete compounding when i=15% per year. The present worth of project B is $thousand. (Round to one decimal place.) More Info Capital Single Payment Compound Amount Factor (F/P, i, N) Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) Compound Amount Factor (F/A, i, N) 1.0000 More Info Recovery Factor (A/P, i, N) 1.1500 (P/A, i, N) 1.1500 1.0000 0.8696 1.3225 2.1500 0.4651 1.6257 0.6151 B с 1.5209 3.4725 0.2880 2.2832 0.4380 - $7,000 -$5,000 1.7490…
21. The income statement for Otto Construction Company appear below: Net sales (all credit sales) $180000 Cost of goods sold 100000 Gross margin 80000 Operating expenses 30000 Interest expense 12000 Income before taxes 38000 Income tax 9500 Net income $28500 Average total assets total $240000. Otto’s income tax rate is 25%.What is the gross margin percentage? (a) 12.5% (b) 15.8% (c) 33.3% (d) 44.4%
1. What amount of money invested today at 15% interest can provide the following scholarships: P30,000 at the end of each year for 6 years; P40,000 for the next 6 years and P50,000 thereafter.

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