D. The Fixed Assets Turnover is reported to be 1.48. The Fixed Assets intensity is 56%. The company efficiency rate as measured by ATO is deviating negatively from the MAX by: a. b. . 1 50% 58.6% 40% None of the above

D. The Fixed Assets Turnover is reported to be 1.48. The Fixed Assets intensity is 56%. The company efficiency rate as measured by ATO is deviating negatively from the MAX by: a. b. . 1 50% 58.6% 40% None of the above

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: Determining missing items in return and residual income computations Data are presented in the…

A: Formula: Return on investment = Operating income / Invested assets Minimum return on investment =…

Q: Return on Investment, Margin, Turnover Data follow for the Consumer Products Division of Kisler…

A: RETURN ON INVESTMENTReturn on investment is one of the profitability ratios which shows how much…

Q: Arshadi Corp.'s sales last year were $49,000, and its total assets were $22,000. What was its total…

A: Total assets turnover ratio measures the efficiency of the company in utilization of its total…

Q: Comparative data on three companies in the same service industry are given below. Required: 2.…

A: ROI stands for return on investment. It is a measure which is used to find out the profitability of…

Q: Solve for (A) current ratio, (B) acid test, (C) average day's collection (360), (D) asset turnover,…

A: Ratio is a mathematical relationship between two variables that are used to determine the financial…

Q: Snodgrass Company has income from operations of $232,800, invested assets of $970,000, and sales of…

A: Profit margin = income from operations / sales Investment turnover = sales /invested assets Return…

Q: Required Supply the missing information in the following table for Gibson Company. (Do not round…

A: Operating Income is one of the important measure of profitability of the business. Operating income…

Q: Assume sales are $150,000; Operating income is $30,000; and average operating assets are $75,000.…

A: As posted multiple question we are answering only first three kindly repost the unanswered questions…

Q: Margin, Turnover, ROI Required: 1. Consider the data for each of the following four independent…

A: Ratio analysis entails assessing a company's financial performance by examining a range of ratios…

Q: Profit Margin, Investment Turnover, and ROI Briggs Company has an operating income of $36,000,…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: Firm J has net income of $124,800, sales of $960,000, and average total assets of $640,000.…

A: Return on investment is calculated by dividing the Operating Income by the Average assets. Return on…

Q: Assume a company reported the following results: Sales Net operating income Average operating assets…

A: Return on investment = Net operating income/Average operating assets Net operating income = Average…

Q: Compute the operating income. $ 2. Compute the margin (as a percent) and turnover ratio. If…

Q: Note: Do not round Intermediate calculations. Round "R Sales ROI Answer is complete but not entirely…

A: The term "operating assets" describes the material and immaterial resources that a business uses to…

Q: Briggs Company has operating income of $45,760, invested assets of $143,000, and sales of $457,600.…

A: Return on investment helps in measuring the efficiency of the amount invested in a particular…

Q: Margin, Turnover, Return on Investment Pelak Company had sales of $4,887,000, expenses of…

A: Operating income = Sales - Expenses Margin = Operating income/Sales Turnover = Sales/Average…

Q: A firm total assets turnover ratio increased from 1.5 to 2.0 it's profit margin (PBIT margin)…

A: Asset turnover ratio is the ratio of sales revenue to total assets of the business, it means how…

Q: Quantitative Problem 2: Mitchell Manufacturing Company has $1,800,000,000 in sales and $320,000,000…

A: Fixed Asset to Sales RatioThe fixed asset-to-sales ratio also known as the fixed asset turnover…

Q: 8. The following information is available for the Hancock Company. Sales Cost of Sales Operating…

A: Workings:- Particulars Amount Amount Sales $ 7,56,000 Less: COGS $ 3,15,000…

Q: Assume a company reported the following results: Sales $ 400,000 Variable expenses 260,000…

A: Formula: Margin = ( Contribution margin / Sales ) x 100

Q: Data for Divisions A, B, C, D, and E are as follows: a. Determine the missing items. Round…

A: Return on investment = Net income / Average investment Profit margin = Net income / Sales Investment…

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: Complete the balance sheet and sales information in the table that follows for J. White Industries…

A: Note 1: Total liabilities-to-assets ratio: 45% Total liabilities/Total assets= 45% Total…

Q: ce Using Return on In Comparative data on three companies in the same service industry are given…

A: Margin = Net operating IncomeSales Turnover = SalesAverage Operating Assets ROI or…

Q: A firm with current assets of $85,750 and current liabilities of $62,958 would have:

A: Current ratio: The financial ratio which evaluates the ability of a company to pay off the debt…

Q: Determining Missing Items in Return Computation One item is omitted from each of the following…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: Briggs Company has income from operations of $24,255, invested assets of $99,000, and sales of…

A: Return on investment is the amount of return earned from the investment.

Q: 15. Firm A has a total asset turnover ratio of 4.4, a net profit margin of 0.11, and return on…

A: Total Assets Turnover Ratio :— It is calculated by dividing net sales revenue by average total…

Q: Provide the missing data in the following table: (Round "Turnover" answers to 1 decimal place.)…

A: Financial ratios are a way for a company to evaluate its financial position. These ratios assist in…

Q: The Marine Division of Pacific Corp. has average invested assets of $120,000,000. Sales revenue of…

A: Return on investment = Operating income / Average invested assets where, Average invested assets =…

Q: Assume a company reported the following information: Sales Minimum required rate of return on…

A: Residual income is the profit earned above the minimum expected return on invested capital,…

Q: Profit Margin, Investment Turnover, and ROI Briggs Company has operating income of $72,576, invested…

A: Du pont analysis is for calculating fundamental performance of the company. Profit Margin= Net…

Q: Scranton Paper Company generates $.97 in sales for every $1 invested in total assets. Which one of…

A: · Ratio analysis used identify the business performance of the company.· It is used to…

Q: One item is omitted from each of the following computations of the return on investment: Return…

A: The objective of the question is to find the missing values in the given equations. The equations…

Q: Return on investment is often expressed as follows: Controllable margin Average operating assets…

A: Ratios are very helpful in decision making process in the business. It makes use of financial…

Q: Briggs Company has operating income of $13,824, invested assets of $96,000, and sales of $230,400.…

A: a. Profit margin; Profit margin=Income from operationsSales×100=$13,824$230,400×100=6%

Q: Determining Missing Items in Return Computation One item is omitted from each of the following…

Q: Determining missing items in return and residual income computations Data for Uberto Company are…

A: Residual income for the division = income from operations - (Assets x minimum acceptable return on…

Q: Provide the missing data in the following table: (Round "Turnover" answers to 1 decimal place.)…

A: Return on investment - Net income/Average operating assetsTurnover = Net sales/Average operating…

Q: Comparative data on three companies in the same service industry are given below: Required: 2. Fill…

A: Lets understand the basics.Margin ratio is a net operating income generated from the sales.Margin =…

Q: Margin, Turnover, Return on Investment Pelak Company had sales of $4,974,000, expenses of…

A: Operating income = Sales - expenses Margin = Operating income / Sales Turnover = Sales / Average…

Q: X-1 Corp's total assets at the end of last year were $395,000 and its EBIT was $52,500. What was its…

A: Basic Earning Power (BEP) is a financial metric that measures a company's ability to generate…

Q: Net sales Cost of goods sold Net income Beginning balance of total assets Ending balance of total…

A: To compute the profit margin and return on total assets, we'll use the following formulas:(a) Profit…

Concept explainers

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.

Question

The Fixed Assets Turnover is reported to be 1.48. The Fixed Assets intensity is 56%. The
company efficiency rate as measured by ATO is deviating negatively from the MAX by:
D.
a.
50%
b.
58.6%
c.
40%
None of the above

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

< ces A family friend has asked for your help in analyzing the operations of three anonymous companies. Required: Supply the missing data in the tabulation below: (Negative amounts should be indicated with a minus sign.) Sales Net operating income Average operating assets Return on investment Minimum required rate of return: Percentage Dollar amount Residual income (loss) $ 10,870,000 $ 4,120,000 17 % 15 % Company B $ 6,800,000 $ 240,000 $ 15 % 320,000 % C $ 9,400,000 $ 5,200,000 $ 23 % 156,000 %
Supply the missing data for three service companies shown in the table below: Note: Loss amounts should be indicated by a minus sign. Round your percentage answers to nearest whole percent. Company B A C Sales Net operating income $ 9,120,000 $ 7,200,000 $ 4,680,000 $ 290,000 Average operating assets $ 3,040,000 $ 1,872,000 Return on investment (ROI) 11 % 20 % % Minimum required rate of return. Percentage Dollar amount Residual income 9% % 13 % $ 261,000 $ 93,600
Profit Margin, Investment Turnover, and ROI Briggs Company has income from operations of $132,756, invested assets of $299,000, and sales of $1,106,300. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin % b. Investment turnover c. Return on investment %
Required Supply the missing information in the following table for Vernon Company. (Do not round intermediate calculations. Round "ROI" answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).) Sales $369,600 ROI % Operating assets Operating income Turnover 2.1 Residual income Operating profit margin 14 % Desired rate of return 17 %
Determining missing items in return and residual income computations Data for Uberto Company are presented in the following table of returns on investment and residual incomes: Invested Assets Income from Operations Return on Investment Minimum Return Minimum Acceptable Income from Operations Residual Income $890,000 $231,400 (a) 15% (b) (c) $460,000 (d) (e) (f) $50,600 $23,000 $310,000 (g) 14% (h) $31,000 (i) $230,000 $48,300 (j) 12% (k) (l) Determine the missing values, identified by the letters above. For all amounts, round to the nearest whole number. a. % b. c. d. e. % f. % g. h. % i. j. % k. l.
Data for Uberto Company are presented in the following table of rates of return on investment and residual incomes: Invested Assets Income from Operations Return on Investment Minimum Return Minimum Acceptable Income from Operations Residual Income $780,000 $187,200 (a) 13% (b) (c) $620,000 (d) (e) (f) $74,400 $24,800 $330,000 (g) 14% (h) $36,300 (i) $250,000 $50,000 (j) 12% (k) (l) Determine the missing values, identified by the letters above. For all amounts, round to the nearest whole number. a. fill in the blank % b. $ fill in the blank c. $ fill in the blank d. $ fill in the blank e. fill in the blank % f. fill in the blank % g. $ fill in the blank h. fill in the blank % i. $ fill in the blank j. fill in the blank % k. $ fill in the blank l. $ fill in the blank
15- If you would like to measure the effectiveness of asset management of a company, which of the following ratios would be the least useful? Average days in inventory Times interest earned ratio Average collection period Inventory turnover ratio Days sales outstanding
Determining missing items in return and residual income computations Data for Uberto Company are presented in the following table of returns on investment and residual incomes: Invested Assets Income from Operations Return on Investment Minimum Return Minimum Acceptable Income from Operations Residual Income $780,000 $187,200 (a) 13% (b) (c) $490,000 (d) (e) (f) $53,900 $24,500 $350,000 (g) 14% (h) $38,500 (i) $260,000 $52,000 (j) 12% (k) (l) Determine the missing values, identified by the letters above. For all amounts, round to the nearest whole number. 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% f. fill in the blank 6% g. $fill in the blank 7 h. fill in the blank 8% i. $fill in the blank 9 j. fill in the blank 10% k.…
= Required Supply the missing information in the following table for Zachary Company: Note: Do not round intermediate calculations. Round "ROI" answer to 2 decimal places. (i.e., 0.2345 shoule Sales ROI Operating assets Operating income Turnover Residual income Operating profit margin Desired rate of return $ 309,600 1.8 % 13 % 19%
Supply the missing data for three service companies shown in the table below: Note: Loss amounts should be indicated by a minus sign. Round your percentage answers to nearest whole percent. Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual income A Company B C $ 9,450,000 $ $ 7,750,000 329,000 $ 5,175,000 $ 3,150,000 $ 2,070,000 11 % 14 % % 9% $ 376,000 % 14 % $ 103,500
Following is information from Skyway Inc. for the year (in thousands). Total annual revenue $3,206,980 Total revenue growth rate 5.0% Terminal revenue growth rate 2% Net operating profit margin (NOPM) 8.2% Net operating asset turnover (NOAT) 3.42 Projected total revenue for the following year would be: Select one: a. $3,469,952 b. None of these are correct c. $3,316,659 d. $3,271,120 e. $3,367,329
Determining 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 % (a) (b) 16 % 0.75 33 % (c) X 1.5 12 % 20 % (d) (e) 15 % 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) %

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS