Financial Accounting Question need answer do fast Randall Company makes and distributes outdoor playequipment. Last year, sales were $2,400,000, operating incomewas $600,000, and the assets used were $3,000,000. The returnon investment (ROI) is:a. 20%b. 80%c. 25%d. 125%e. none of the above

Step 1: Define Evaluating ProfitabilityAnalysts for financial statements find that using…

Answered: Randall Company makes and distributes…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required Information [The following Information applies to the questions displayed below.] Megamart provides the following Information on its two Investment centers. Investment Center Electronics Sporting goods Sales $ 63,460,000 19,050,000 1. Compute return on Investment for each center. Using return on investment, which center is most efficient at using assets to generate Income? 2. Assume a target Income of 12% of average assets. Compute residual income for each center. Which center generated the most residual Income? 3. Assume the Electronics center is presented with a new Investment opportunity that will yield a 14% return on Investment. Should the new Investment opportunity be accepted? The target return is 12%. Complete this question by entering your answers in the tabs below. Numerator: Required 1 Required 2 Required 3 Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? Income $ 3,173,000…
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Randall Company makes and distributes outdoor play equipment. Last year, sales were $2,400,000, operating income was $600,000, and the assets used were $3,000,000. The return on investment (ROI) is: a. 20% b. 80% c. 25% d. 125% e. none of the above