Required Complete the following table Sales Operating Income Average Operating Assets Return on Investment Minimum Required Rate of return % Residual Income A 400,000 160,000 20% 15% B Company 750,000 45,000 18% 50,000 C 600,000 150,000 12% 6,000

Required Complete the following table Sales Operating Income Average Operating Assets Return on Investment Minimum Required Rate of return % Residual Income A 400,000 160,000 20% 15% B Company 750,000 45,000 18% 50,000 C 600,000 150,000 12% 6,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Company A sales Sales 100% 70% Variable costs 33,000 Contibution Margin P 44,000 Fixed Costs Net…

A: Operating leverage indicates the ability of the business to manage fixed and variable costs to…

Q: Data for the Deluxe Division of Blossom Industries which is operated as an investment center is as…

A: A contribution margin measures how profitable a product is to produce. A company's contribution…

Q: Refer to the following information. What are the average operating assets for Division B? Sales Net…

A: The return on investment is calculated as net income divided by average operating assets. ROI = Net…

Q: Division A $ 12,280,000 $ 3,070,000 $ 601,720 10.00% Division B $35,350,000 $ 7,070,000 $ 600,950…

A: Return on investment (ROI) is a performance statistic used to evaluate the efficiency or…

Q: Division Alpha Bravo Charlie Sales $ 363,000 Net operating income %24 43,560 24 78,375 Average…

A: Ratio analysis helps to analyze the financial statements of the company. The management can take…

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: A4

Q: $ 400,000 260, e00 Sales Variable expenses Contribution margin Fixed expenses 140, eee 40,e00 Net…

A: Lets understand the basics. Residual income is a income earned over a minimum required rate of…

Q: The income from operations and the amount of invested assets in each division of Beck Industries are…

A: Formula: Minimum acceptable income = Invested Assets x Minimum acceptable return.

Q: The following are selected data for the division for the consumer products of ABC Corp for 2020:…

A: The answer for the multiple choice question and the calculation of return on investment for the…

Q: Presented here is information related to the Southern Division of Pronghorn, Inc. Contribution…

A: Return on investment :— It is the ratio between operating income and average operating assets. It is…

Q: Part I (1) What is residual income and how is it calculated? (2) Please use the information below…

A: The ratio analysis helps to analyze the financial statements of the business with various elements…

Q: Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 40%…

A: Step 1: Step 2: Step 3: Step 4:

Q: What is the return on investment for A? 1. 18% 2.40% 3. 20% 4. 15% 0 1 O 2 O 3 O 4

A: Introduction:- Return on investments a simple ratio.. It is calculated divides the net profit (or…

Q: The sales, income from operations, and invested assets for each division of Wren Company are as…

A: Residual Income is a performance measurement approach to assess how effectively the invested capital…

Q: XYZ Company has two divisions, A and B. Information for each division is as follows: A Net earnings…

A: Solution: Net sales of A = Net earnings / Margin = P40,000 / 10% = P400,000

Q: Accounting Complete the missing information in the columns below: A C Sales $100,000 (d) $450,000…

A: Variable Cost- A variable cost is a business expense that changes in percentage to how much a…

Q: ☐ E 1 2 ChairCo, Inc. reports the following financial information for its Table Division: Average…

A: Step 1: Meaning of residual incomeResidual income is the excess of controllable margin over and…

Q: Use the following information for the Problems below: The following data pertain to three divisions…

A: We can use the following formula to find the missing values of the table.Formula used for…

Q: Given the following data: * Return on investment Sales . Average operating assets Turnover Minimum…

A: Net income = $10,000 ($100,000 x 10%) or ($40,000 x $25%)

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: XYZ Company has two divisions, A and B. Information for each division is as follows:…

A: Margin = Net earnings for division / Total sales for the division Total sales for the division = Net…

Q: The following data pertain to Dakota Division's most recent year of operations. Income $ 16,000,000…

A: Income = $16,000,000 Average invested capital = $185,000,000 Return on invested capital = 14%

Q: company with two divisions (X and Y) prepared the following segmented income statement: Y Total 2$ ?…

A: Solution: Segment margin is the margin of the segment which is based on costs directly related to…

Q: The following data pertain to Dakota Division's most recent year of operations.

A: Sales Margin: This ratio tells us how much profit is generated over a company's sales. It is…

Q: Required information Use the following information for the Problems below. The following data…

A: ROI means return on investment.. It is the percentage return earned by the entity on the operating…

Q: The sales, income from operations, and invested assets for each division of Wren Company are as…

A: Residual Income = Income from Operations - Invested Assets x Minimum rate of return Residual Income…

Q: Company A. Sales $ 10.900,000 $ 6,700,000 S 0.000,000 Net operating income 238.000 Average operating…

A: Lets understand the basics. For calculating the requirement, we will need to use below formulas.…

Q: Presented below is information related to the Southern Division of Lumber Ltd. Contribution margin…

A: To calculate the Southern Division's Return on investment (ROI),you can use the formula:ROI =…

Q: Sales Operating Income Invested Assets Division C $4,000,000 $410,000 $3,500,000 Division D…

A: Residual income can be calculated from the cost of operating assets.

Q: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 96,000…

A: Degree of operating leverage is the difference between the contribution margin and the net operating…

Q: Assume a company reported the following results: Sales Variable expenses Contribution margin Fixed…

A: Actual income=operating assets×Minimum return

Q: he operating income and the amount of invested assets in each division of Conley Industries are as…

A: a. Retail division Commercial division Internet division Operating division 9600000 12100000…

Q: If net operating income is $80,000, average operating assets are $640,000, and the minimum required…

A: Correct answer : $9,600

Q: P 40,000 P100,000 15% 10% 12%

A: Solution: Sales for Division A = Net earnings of A / Margin % = 40000/ 10% = 400,000

Q: Presented below is information related to the Southern Division of Lumber Ltd. Contribution margin…

A: To calculate the Southern Division's Return on investment (ROI),you can use the formula:ROI =…

Q: Residual Income The operating income and the amount of invested assets in each division of Otte…

A: Residual income: Residual income is the excess of income over the minimum acceptable return on…

Q: company has the following information available for three of its divisions. COMPANY INFORMATION FOR…

A: Sales Revenue Is Calculated By Dividing The Net Operating Income With The Profit Margin Ratio.Sales…

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: The following are selected data for the division for the consumer products of ABC Corp for 2020:…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: The following data relate to the Motor Division of Young Company: Sales…

A: RETURN ON INVESTMENT Return on investment is one of the important Profitability Ratio. Return on…

Q: The dollar sales required for the company to break even is closest to:

Q: Required Information of 15 The following information applies to the questions displayed below]…

A: Margin = operatin income/ net sales

Question

Required
Complete the following table
Sales
Operating Income
Average Operating Assets
Return on Investment
Minimum Required Rate of return
%
Residual Income
A
400,000
160,000
20%
15%
B
Company
750,000
45,000
18%
50,000
C
600,000
150,000
12%
6,000

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: Introduce to return on investment and Residual income

VIEW

Step 2: Working for missing data for company A

VIEW

Step 3: Working for missing data for company B

VIEW

Step 4: Working for missing data of company C

VIEW

Solution

VIEW

Step by step

Solved in 5 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, accounting and related others by exploring similar questions and additional content below.

Similar questions

Amount Sales 123,000 Variable expenses 49,200 Contribution margin 73,800 Fixed expenses 24,000 Net operating income 49,800 Determine the degree of operating leverage? %24
What is EVA for Division Y?
Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Traceable fixed expenses Sales Variable expenses Contribution margin Segment margin Common fixed expenses Net operating income The dollar sales required for the company to break even is closest to: $ 300,000 $ 209,500 Total $ 509,500 120,000 180,000 140,000 260,000 69,500 249,500 100,000 80,000 180,000 $ 80,000 $ (10,500) 69,500 48,000 $ 21,500
What is residual income on these facts? Return on investment (ROI) 20% Sales $400,000 Margin 4% Minimum required rate of return. 16% O $ 6,000 O $ 16,000 O $ 3,200 $12,800 O $10,000
kai.8
XYZ Company has two divisions, A and B. Information for each division is as follows: A B Net earnings for division P 40,000 P 260,000 Asset base for division P100,000 P1,200,000 Target rate of return 15% 18% Margin 10% 20% Weighted average cost of capital 12% 12% What is the operating asset turnover for A? 0.15 0.10 4.00 2.50 Group of answer choices 1 2 3 4
10q-2
Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Total Sales $ 300,000 $ 200,000 $ 500,000 Variable expenses 120,000 140,000 260,000 Contribution margin 180,000 60,000 240,000 Traceable fixed expenses 100,000 80,000 180,000 Segment margin $ 80,000 $ (20,000) 60,000 Common fixed expenses 50,000 Net operating income $ 10,000 The dollar sales required for the company to break even is closest to:
Please avoid image based solutions thnx
Data Sales $25,000,000 Net operating income $3,000,000 Average operating assets $9,000,000 Minimum required rate of return 25% Enter a formula into each of the cells marked with a ? below Review Problem: Return on Investment (ROI) and Residual Income Compute the ROI Margin ? Turnover ? ROI ? Compute the residual income Average operating assets ? Net operating income ? Minimum required return ? Residual income ?
10q-3
Assume that Division Blue has achieved a yearly operating income of $162,000 using $973,000 of invested assets. If management has set a minimum acceptable return on investment of 7%, the residual income is a. $75,112 b.$112,668 c.$93,890 d.$162,000