Company A. Sales $ 10.900,000 $ 6,700,000 S 0.000,000 Net operating income 238.000 Average operating assets 4,240,000 $ 6.200,000 Return on investment 19 % 14 % 24 % Minimum required rate of return: Percentage 17 % Dollar amount 340.000 Residual income (loss) 188,000
Q: Division Northeast Southeast West Sales $ ? $10,980,000 $ ? Net operating income $ ? $878,400…
A: Margin = Net Operating Income / Sales Turnover = Sales / Average Operating Assets Return on…
Q: * 00 00 # m Required Informatlon (The following information applies to the questions displayed…
A: Solution Operating income of investment opportunity = Contribution margin - fixed expenses =…
Q: 3. Data $ 72,000,000 $ 3,600,000 $ 18,000,000 Sales Net operating income Average operating assets 6.…
A: a. ROI = $3,600,000$18,000,000=20% b. The minimum required rate of return =…
Q: Crawford Corp. has an ROI of 23% and a residual income of $10,400. If operating income equals…
A: RETURN ON INVESTMENT Return on Investment is the Ratio Between Net Operating Income & Average…
Q: Fill in the blanks for each independent situation. A B $350,000 $ Sales Variable expense Fixed…
A: Cost volume profit analysis is the one which is prepared by the entity in order to determine the…
Q: Washington Company has two divisions: the Adams Division and the Jefferson Division. The following…
A: Residual income: Residual income is the income earned by a company over and above the expected…
Q: Your Company's residual income was $8,500. Net income was $170,000 and average operating assets…
A: Residual income = Net Operating income - Minimum return required of return where, Minimum return…
Q: Provide the missing data for the following situations: Red Division White…
A: The ratio analysis helps to analyse the financial statements of the business on the basis of various…
Q: The following data has been provided for a company’s most recent year of operations: Return on…
A: The objective of this question is to calculate the residual income for the company's most recent…
Q: Part I (1) What is residual income and how is it calculated? (2) Please use the information below…
A: The ratio analysis helps to analyze the financial statements of the business with various elements…
Q: %24 Required Information [The following information applies to the questions displayed below.]…
A: margin = sales - variable cost/ sales ×…
Q: The following information relates to the Quilt Division of TDS Corporation for last year: Sales…
A: Given, Net operating income = $60,000 Average operating assets = $500,000 Minimum required rate of…
Q: Washington Company has two divisions: the Adams Division and the Jefferson Division. The following…
A: Residual income is the part of net income after charging the cost of capital which is also known as…
Q: Sales Net operating income Average operating assets $17,958,000 51,005,200 5 4,898,000 The…
A: Formula: Division return on investment = ( Net operating income / Average operating Assets ) x 100
Q: The sales, income from operations, and invested assets for each division of Wren Company are as…
A: Residual Income is a performance measurement approach to assess how effectively the invested capital…
Q: Sales $ 400, eee Variable expenses 260,e00 140, eee Contribution margin Fixed expenses 96,eee Net…
A: Formula: Contribution margin ratio = ( Contribution margin / Sales ) x 100
Q: Assume a company reported the following results: Sales $ 400,000 Variable expenses 260,000…
A: Formula: Margin = ( Contribution margin / Sales ) x 100
Q: Your Company's residual income was $13.500. Net income was $67.500 and average operating assets were…
A: Residual income = Net income - Minimum profit required where, Minimum profit required = Average…
Q: Q23 Selected data from Box Division's accounting records revealed the following: Sales $…
A: Ratio Analysis is the method of checking the company's operational efficiency, liquidity, and…
Q: Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate…
A: Return on investment (ROI) is a financial ratio used to calculate the benefit an investor will…
Q: company reported the following data for its past 2 years of operation: Year 1 Return on Investment…
A: Solution: Return on investment for year 2 = 20% Required return for year 2 = 10% Residual income =…
Q: The Millard Division's operating data for the past two years are provided below: Return on…
A: Lets understand the basics.Formula for calculating net operating income are,First we will need to…
Q: sales Sales 100% Variable costs 33,000 Company A Amount P110,000 30% 66.000 30,000 % of sales P…
A: Operating Leverage :— It is calculated by dividing contribution margin by net operating income.…
Q: The following data pertain to Dakota Division's most recent year of operations. Income $ 16,000,000…
A: Income = $16,000,000 Average invested capital = $185,000,000 Return on invested capital = 14%
Q: Sales $ 12,000,000 $ 14,000,000 $ 25,000,000 Average operating assets $ 3,000,000 $…
A: Investment: It is an asset or item which is purchased and held to generate income or for…
Q: [The following information applies to the questions displayed below.) Westerville Company reported…
A: An investment's profitability and efficiency are assessed using a (ROI), which compares an…
Q: $75,000,000 $80,000,000 2017 Total assets 2018 Total assets $ 1,875,000 $ 1,925,000 $ 4,525,000 $…
A: ROI stands for Return on investment that shows the percentage of return received from the invested…
Q: Division Y has generated sales revenue of $260,000 and achieved operating income of $18,500 using…
A: Sales and net income are related to each other and that gives the profit margin.Good profit margins…
Q: The following data pertain to Dakota Division's most recent year of operations.
A: Sales Margin: This ratio tells us how much profit is generated over a company's sales. It is…
Q: Sales 13,000,000 Variable expenses 8,600,000 Contribution margin 4,400,000 Fixed expenses 2,940,000…
A: Minimum required return = $8,000,000 x 15% = $1,200,000
Q: Residual Income The Commercial Division of Galena Company has income from operations of $69,600 and…
A: Residual income is excess income generated more than the minimum rate of return. It is calculated…
Q: $300.000 $210.000 $340.000 $850.000 ts $180.000 $180.000 $220.000 $590,000 50.000 50000 40.000…
A: Solution: Change in net income = Avoidable fixed cost - contribution margin lost on Product G = 0 -…
Q: Saved Dade Corp. has residual income of $16,600. If operating income equals $37,000 and the minimum…
A: Solution: Minimum Target income = Operating income - residual income = 37000 - 16600 = 20,400
Q: If net operating income is $83,000, average operating assets are $415,000, and the minimum required…
A: Residual income is the net operating income over and above income at minimum required rate of return…
Q: Residual Income Washington Company has two divisions: the Adams Division and the Jefferson…
A:
Q: Sales Operating Income Invested Assets Division C $4,000,000 $410,000 $3,500,000 Division D…
A: Residual income can be calculated from the cost of operating assets.
Q: If net operating income is $80,000, average operating assets are $640,000, and the minimum required…
A: Correct answer : $9,600
Q: Assume a company reported the following results: Sales Variable expenses Contribution margin Fixed…
A: Residual income: Residulal income means excess of income earned over the desired income. Desired…
Q: Residual Income The operating income and the amount of invested assets in each division of Otte…
A: Residual income: Residual income is the excess of income over the minimum acceptable return on…
Q: Mason Division had $650,000 in invested assets, sales of $700,000, income from operations of…
A:
Q: %24 Required Informotlon [The following information applies to the questions displayed below]…
A: The turnover ratio indicates the efficiency of the total assets to generate sales. It can be…
Q: Quest's return on investment is A. 10.0% B. 13.3% C. 27.5% D. 30.0%
A: The following information pertains to Co.'s Gold Division for the year just ended: Sales…
Q: Year 1 Return on investment Net operating income Turnover Margin Sales Year 2 12 368 $ 384,000 3…
A: We know that, Return on investment (ROI) = Net Profit/Assets Turnover = Revenue/Asssets Margin = Net…
Q: Coolbrook Company has the following information available for the past year: River Division Sales…
A:
Q: Required Information of 15 The following information applies to the questions displayed below]…
A: Margin = operatin income/ net sales
Q: Supply the missing information in the following table for Vernon Company. (Do not round intermediate…
A: Ratio analysis helps to analyze the financial statements of the company. The management can take…
Q: What is residual income on these facts? Return on investment (ROI) 20% Sales $400,000 Margin 4%…
A: Using Financial Ratio , investors & others stakeholders can evaluate company from different…
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- QUESTION 24 Alpha Company has shown the following financial information: Sales: $4,500,000, Total assets: $1,800,000 Cost of capital: 15% Residual income: $90,000 The company’s return on investment is: A. 15% B. 18% C. 10% D. 12% E. 20%Sales $1248000 Contribution margin 466560 Total direct fixed costs 405000 Total operating assets Jan. 1, 2022 740000 Total operating assets Dec. 31, 2022 799000 Bramble Company's desired return 12% What is Bramble Company's ROI, rounded to the nearest whole number? 8% O 12% O 55% O 51%Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Total Sales $ 300,000 $ 200,000 $ 500,000 Variable expenses 120,000 140,000 260,000 Contribution margin 180,000 60,000 240,000 Traceable fixed expenses 100,000 80,000 180,000 Segment margin $ 80,000 $ (20,000) 60,000 Common fixed expenses 50,000 Net operating income $ 10,000 The dollar sales required for the company to break even is closest to:
- 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 $2,689,600Assume a company had net operating income of $300,000, sales of $1,500,000, average operating assets of $1,000,000, and a minimum required rate of return on average operating assets of 10.00%. The company's residual income is closest to: Multiple Choice $100,000. $200,000. $150,000. $250,000.dreams demstime dremstph %24 The co ired rate of is 15%. Requlred Information The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: $ 2,300,000 Sales Variable expenses Contribution margin Fixed expensesi 1,630,000 1,170,000 24 460,000 $ 1,437,500 Net operating income Average operating assets At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics: $ 460,000 Contribution margin ratio Fixed expenses 50% of sales $ 161,000 The company's minimum required rate of return is 15%. 9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Do not round Intermedlate calculations. Round your percentage answer to 1 declmal place (I.e., 0.1234 should be considered as 12.3).)Residual Income The Commercial Division of Galena Company has operating income of $264,070 and assets of $549,000. The minimum acceptable return on assets is 13%. What is the residual income for the division?Assume division 1 of the XYZ Company had the following results last year (in thousands) Management's required rate of return is 81% and the weighted average cost of capital is 6% Its effective tax rate is 30% Sales$ 9,000,000 Operating expenses $ 1,200,000 Operating income $1,500,000 Total revenue$ 2,000,000 Total assets $ 12,000,000 Current liabilities$ 5,000,000 What is the division's residual income? $100,000 $200,000 $500, 000 $ 540,000 Assume division 1 of the XYZ Company had the following results last year (in thousands). Management's required rate of return is 8% and the weighted average cost of capital is 6% effective tax rate is 30% . \table [[Sales, $9, 000, 000Year 1 Return on investment Net operating income Turnover Year 2 12% 36%8 $ 384,000 Margin Sales 3 $4,800,000 Del Luna Division's margin in Year 2 was 150% of the margin in Year 1. The turnover for Year 1 was: 1.2 O a. b. 1.5 Oc. 3.0 Od. 4.0Kyle Corporation provides the following information for the Product Division and Service Division for the year. Product Division Service Division 420,000 $ 650,000 195,000 245,000 640,000 610,000 14.0% 14.0% Net sales Operating income Average total assets Target rate of return $ Requirement 1. Calculate the return on investment for each division. (Enter answers as a percent rounded to the nearest hundredth percent, X.XX%) The return on investment for the Product Division is The return on investment for the Service Division is Requirement 2. Which division has the highest ROI? % % Requirement 3. Calculate the residual income for each division. (Round answers to the nearest whole dollar.) The residual income for the Product Division is The residual income for the Service Division is Requirement 4. Which division has the highest residual income?Assume the Hiking Shoes division of the Simply Shoes Company had the following results last year (in thousands). Management's target rate of return is 30% and the weighted average cost of capital is 5%, its effective tax rate is 35%. Sales Operating income Total assets Current liabilities What is the division's Residual Income (RI)? ⒸA. $280,000 OB. $1,750,000 OC. $800,000 OD. $1,800,000 $5,000,000 2,000,000 4,000,000 840,000Assume that Division Blue has achieved a yearly operating income of $162,000 using $973,000 of invested assets. If management has set a minimum acceptable return on investment of 7%, the residual income is a. $75,112 b.$112,668 c.$93,890 d.$162,000SEE MORE QUESTIONS