Dillon requires a minimum return on its investments of 25%. Dillon Company has the following information available for one of its divisions: Average operating assets Sales $4,000,000 $4,800,000 Return on investment (ROI) 30% Based on this information, what is the division's asset turnover? A.2.78 B.0.83 C. 4.00 D. 1.20 E. None of the answer choices is correct.
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Based on this information, what is the division assets turnover??
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- Selected data from an investment center of IROL Inc. follow:Sales $8,000,000Net book value of assets, beginning 2,500,000Net book value of assets, ending 2,600,000Net operating income 640,000Minimum rate of return 12%Required1. Calculate return on sales (ROS), asset turnover (AT), and return on investment (ROI).2. Calculate residual income (RI).The following info is provided for three operating divisions. The minimum accepted rate of return by the investor is 7%. Division M N P invested assets 14,000,000 86,000,000 840,000 Compute Return on Investment for: a. Division M type your answer... b. Division N type your answer... c. Division P type your answer... sales net income Compute Residual Income for: 25,000,000 112,000,000 1,750,000 d. Division M$ type your answer... e. Division N $ f. Division P$ type your answer... type your answer... 50,000,000 250,000,000 6,000,000 g. What division looks like the best division? type your answer...The Marine Division of Pacific Corporation has average invested assets of $110,000,000. Sales revenue of $50,280,000 results in net operating income of $9,972,000. The hurdle rate is 7%. Required a. Calculate the return on investment. b. Calculate the profit margin. c. Calculate the investment turnover. d. Calculate the residual income. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the return on investment. Note: Round percentage to 2 decimals. Return on Investment Required D %
- Hodgkiss Mig, Inc, is currently operating at only 92 percent of fixed asset capacity Current sales are $780,000. Fixed assets are $470,000 and sales are projected to grow to $880,000. How much in new foxed assets are required to support this growth in sales? Assume the company wants to operate at full capacity (Do not round intermediate celculetions and round your answer to 2 decimal places,e.g.. 32.16) O Answer is complete but not entirely correct. New fxed assets 487 B72000Banderas, Inc. has three investment centers, Red, Brown, and Black. The following data is available for each of these investment centers. BANDERAS, INC. DATA FOR INVESTMENT CENTERS OF COMPANY Red Operating Income $ A $ Brown E $ Sales Revenue B 1,000,000 Black I 1,500,000 Average Investment in Assets 300,000 500,000 J Profit Margin Ratio C 15% 10% Asset Turnover Ratio 4 F K Return on Investment (ROI) 25% G 25% Minimum Required Rate of Return 20% H L Residual Income D 50,000 30,000 REQUIRED: Using the attached answer sheets, compute the missing items A through L for Banderas, Inc. Round all percentages to two decimal places (four decimal places in all), all dollar amounts to the nearest whole dollar, and all other amounts to two decimal places.What is the investment turnover?
- Finally, management would use the target fixed assets ratio with the projected sales to calculate the firm's required level of fixed assets as follows: Required level of fixed assets = (Target fixed assets/Sales) × Projected sales Mitchell Manufacturing Company has $1,000,000,000 in sales and $230,000,000 in fixed assets. Currently, the company's fixed assets are operating at 75% of capacity. What level of sales could Mitchell have obtained if it had been operating at full capacity? Do not round intermediate calculations. Round your answer to the nearest dollar.$ What is Mitchell's Target fixed assets/Sales ratio? Do not round intermediate calculations. Round your answer to two decimal places. % If Mitchell's sales increase by 50%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio? Do not round intermediate calculations. Round your answer to the nearest dollar.$Mitchell Manufacturing Company has $1,600,000,000 in sales and $390,000,000 in fixed assets. Currently, the company's fixed assets are operating at 70% of capacity. What level of sales could Mitchell have obtained if it had been operating at full capacity? Do not round intermediate calculations. Round your answer to the nearest dollar.$ What is Mitchell's Target fixed assets/Sales ratio? Do not round intermediate calculations. Round your answer to two decimal places. % If Mitchell's sales increase by 50%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio? Do not round intermediate calculations. Round your answer to the nearest dollar.Thorpe Mfg., Inc., is currently operating at only 81 percent of fixed asset capacity. Current sales are $740,000. Suppose fixed assets are $600,000 and sales are projected to grow to $902,000. How much in new fixed assets is required to support this growth in sales? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) New fixed assets
- Bajaj Ltd. reported the following statistics and results for 2020: Net operating income Return on sales $ 54,000 Asset turnover 2.5 Residual income $ 10,880 Required: 1. What was the value of Bajaj's average operating assets in 2020? Average operating assets 2 If the required rate of return is 7% what Is the ROI? (Round your answer to 2 decimal places.) ROIReturn on investment is often expressed as follows: ROI = Controllable margin Average operating assets Controllable margin Sales Sales Average operating assets (b1) Comparative data on three companies operating in the same industry follow. The minimum required ROI is 10% for all three companies. Determine the missing amounts. (Round asset turnover of Company B and return on investment of Company C to 1 decimal place, e.g. 15.2 or 15.2% and all other answers to O decimal places. e.g. 152. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Sales Net operating income Average operating assets Profit margin Assets turnover Company A Company B $1,382,000 $700,400 $165.840 $133,076 (b) $ $691.000 (c) $ (d) % (e) % Return on investment (h) Residual income S k) $ () $ Company C $4,845,000 0.5 %Alexander Inc. makes basketballs. The results for the year were as follows: Basketballs Sales $450,000 Income $72,000 Asset base $300,000 Weighted average cost of capital 15% Required:Compute the following amounts for the company:SHOW ALL CALCULATIONS. ROUND EACH NUMBER TO TWO (2) DECIMAL PLACES. A. Return on investment (ROI). B. Residual income if the desired rate of return is 20%. C. EVA. D. Turnover. E. Margin.
