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: etermining missing items in return on investment computation ne item is omitted from each of the…

A: The ratio analysis helps to analyze the Financial statements of the business on the basis of various…

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: The table below is calculated from the Exhibit 6 of Zara case. What is the worst interpretation…

A: Competitive advantage can be taken by the company if it maintains sufficient amount of cash or cash…

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: Shalom Company provided you the following data: Average operating assets 120,000 Margin on sales…

A: Formula : Residual Income = Net operating income - (Average operating assets x Minimum required rate…

Q: Division A's asset turnover (AT) is (rounded to two decimal places):

A: Given that , Sales = $490000 Average investment = $416500 Operating income = $ 83300

Q: Determining missing items in return on investment computation One item is omitted from each of the…

A: Return on investment can be calculated by using the following formula: Return on investment =…

Q: Provide the missing data in the following tabulation: Division Alpha Bravo Charlie Revenue…

A: Answer:- Operating profit meaning:- Operating profit is basically the sum of money that remains…

Q: Shandling Company had operating income of $70,000, sales of $218,750, and turnover of 0.5. What is…

A: Working: Turnover = Sales / Average operating assets 0.5 = $218,750 /Average operating assets…

Q: family friend has asked your help in analyzing the operations of three anonymous com ndustry. Supply…

A: Operational assets: These are the resources that the company uses to run its operations and bring in…

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

A: Profit margin is the percentage of profit earned by the entity on its sales. It helps to determine…

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

A: Formula: Return on investment = Profit margin * Investment turnover a. Calculate the investment…

Q: Which of the following changes would result in the TOTAL ASSET TURNOVER ratio declining by…

A: Assets turnover shows the effective utilization of the resources of the company and converting into…

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

A: Return on investment = Profit margin x Investment turnover a) 15% = 10% x (a) 0.15 = 0.1 x (a) (a) =…

Q: Supply the missing data for three service companies shown in the table below: Note: Loss amounts…

A: Return on investment (ROI) is calculated by dividing net operating income by average operating…

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: 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: Aneko Company reports the following: net sales of $14,800 for Year 2 and $13,990 for Year 1;…

A: The ratio refers to the relationship that exists between two variables. In accounting, the ratio is…

Q: Calculate the residual income with the following data: • Controllable margin $392,413 • Minimum Rate…

A: Residual value: Residual income is income that one continues to receive when the completion of the…

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

A: Lets understand the basics.The margin ratio is a net operating income generated from the…

Q: Consider the following data of Thor Corporation's Southern Division: Sales revenue $307,200 Capital…

A: Residual income = Net operating income - (Required return on capital investment)

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: Supply the missing data for three service companies shown in the table below: Note: Loss amounts…

A: Net operating income is divided by average operating assets to determine return on investment, or…

Q: [The following information applies to the questions displayed below.] Marfar Industries produces…

A: Return on investment :— It is calculated by dividing net operating income by average operating…

Q: Out of these three companies, which company is doing better and why?

A: Ratio is a tool which is used to evaluate the firm’s performance and growth in different terms by…

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: None

A: CalculationsCompany B: Average operating assets (c) ROI=Net operating income/Average operating…

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

A: Operating income is the difference between total revenue and total operating expenses of the…

Q: Determining missing items in return on investment computation One item is omitted from each of the…

A: Investment:- An investment is defined as those assets or items which acquired for income generation…

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: A family friend has asked your help in analyzing the operations of three anonymous companies…

A: Return on investment (ROI) is calculated by dividing net operating income by average operating…

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: None

A: Detailed explanation:Operating Asset Turnover = sales / average operating assets Operating Asset…

Q: Want Correct Answer

A: Step 1: Calculate Average Operating Assets using Turnover Formula: Average Operating Assets= Sales/…

Q: The Central Division for Chemical Company has a return on investment of 21% and an investment…

A: Profit margin is the return on investment divided by the investment turnover.

Q: The managers of the XYZ clubs, who have the authority to make investments as needed, are evaluated…

A: The Return on Investment (ROI) is the financial formula that compares the return earned through a…

Q: Supply the missing data for three service companies shown in the table below. Note: Loss amounts…

A: Return on investment (ROI) :— It is calculated by dividing net operating income by average operating…

Q: Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate…

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

Q: Comparative data on three companies operating in the same industry follow. The minimum required ROI…

A: Using the Formulas:Profit Margin Net Operating Income /Sales Asset Turnover Sales /AOAROINet…

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

A: Operating profit margin is ratio of operating profit with sales revenue. Turnover means assets are…

Q: Supply the missing data for three service companies shown in the table below: Note: Loss amounts…

A: Return on investment helps in measuring the performance by evaluating the profit and efficiency of…

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: Data for Uberto Company are presented in the following table of returns on investment and residual…

A: (a) Rate of Return on Investments = Income from Operations / Invested Assets = $231,400/$890,000 =…

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

Pharoah Corporation's Cajun Spice division has a segment margin is $434200 for the current reporting period. The division has an asset turnover of 3.1. Segment margin as a percentage of sales is 10%. What is the division's ROI? O 31% O 10% O 21% O The answer cannot be determined from the information given.
Determining missing items in return and residual income computations 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 $925,000 $185,000 (a) 15% (b) (c) $775,000 (d) (e) (f) $93,000 $23,250 $450,000 (g) 18% (h) $58,500 (i) $610,000 $97,600 (j) 12% (k) (l) Determine the missing values, identifying each item by the appropriate letter. 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. $fill in the blank 11 l. $fill in the blank 12
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.…
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 Income from Return on Minimum Minimum Acceptable Residual Operations Investment Return Income from Operations Income Assets $925,000 $185,000 (a) 15% (b) (c) $775,000 (d) (e) (f) $93,000 $23,250 $450,000 (g) 18% (h) $58,500 (i) $610,000 $97,600 (j) 12% (k) (1) Determine the missing values, identifying each item by the appropriate letter.
ROI and Margin Arbus Company provided the following information: Turnover 1.3 Operating assets $106,000 Operating income 6,620 Required: 1. What is ROI? (Round your answer to three decimals.) 0.062 ✓ 2. What is margin? (Round your answer to two decimals.) X Feedback
Required Supply the missing information in the following table for Rooney Company. (Do not round intermediate calculations. Round "ROI" answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).)
Flamengo Co is a sporting goods manufacturing. It had an operating income of $57,000, sales of $222.000, and a turnover ratio of 0.55. What is Flamengo's return on investment (ROI)? (Note: Round all numbers to two decimal places.) O 64.60% O Flamengo's ROI cannot be determined from this information. O 18.75% O 50.60% O 14.30%
= 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
3
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 %

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