Give answer to me Question:The Top Hat Division of Blandon's Fine Menswear had the following results last year (inthousands).Sales$4,500,000Operating income $675,000Total assets$3,000,000Current liabilities $250,000Management's target rate of return is 12% and the weighted average cost of capital is9%.a. What is the Top Hat Division's sales margin?b. What is the Top Hat Division's capital turnover?

Explanation of Sales Margin: Sales margin is a measure of profitability that indicates how much of…

Answered: Question: The Top Hat Division of…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 3PB: The income statement comparison for Rush Delivery Company shows the income statement for the current...

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Golden Goodness (GG) has an investment center that had the following data: Operating Income $28,000 Sales $350,000 Invested assets $175,000 PMB has set a minimum acceptable rate of return at 14%. Using the information, answer the following questions. You must include what type of number it is (%, $, etc.) Part A: What is the profit margin? Part B: What is the investment turnover? Part C: What is the return on investment? Part D: What is the residual income? Part E: Explain each of the calculations you just performed (a-d).
Golden Goodness (GG) has an investment center that had the following data: Operating Income $28,000 Sales $350,000 Invested assets $175,000 PMB has set a minimum acceptable rate of return at 14%. Using the information, answer the following questions. You must include what type of number it is (%, $, etc.) What is the profit margin? What is the investment turnover? What is the return on investment?
What is the Rate of Return on Investment (ROI) for Stevenson Corporation, given the following info: Invested Assets = $275,000 Sales $330,000 Income from Operations = $49,500 Desired minimum rate of return = 7.5% O 10.0% 18.0% 8.0% 7.5%
Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last year (in thousands). Management's target rate of return is 5% and the weighted average cost of capital is 25%. Its effective tax rate is 30%. $13,000,000 1,300,000 1,500,000 Sales Operating income Total assets Current liabilities 810,000 What is the division's sales margin? O A. 10.00% O B. 54.00% O C. 866.67% O D. 86.67%
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 15%. Its effective tax rate is 30%. Sales Operating income Total assets Current liabilities What is the division's Return on Investment (ROI)? A. 68.57% B. 171.43% C. 40% O D. 22.57% $6,000,000 2,400,000 3,500,000 790,000 CO
Golden Goodness (GG) has an investment center that had the following data: Operating Income $28,000 Sales $350,000 Invested assets $175,000 PMB has set a minimum acceptable rate of return at 14%. Using the information, answer the following questions. You must include what type of number it is (%, $, etc.) Part A: What is the residual income? Part B: Show calcualtions on how you got answer
Steel corporation presented the following results for the period just ended: Sales 6,000,000 Capital Investment 2,000,000 Net Income 1,000,000 To arrive at the return on investment, which of the following should be used? A. ROI = (6/2) X (1/6) B. ROI= (2/6) X (1/6) C. ROI= (6/2) X (6/1) D. ROI= (2/6) X (6/1)
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.
Assume the Hiking Shoes division of the All About Shoes Corporation 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 $14,000,000 Operating income Total assets 3,500,000 2,000,000 770,000 Current liabilities What is the division's sales margin? O A. 175.00% B. 25.00% OC. 38.50% O D. 700.00%
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