Required informationExercise 10-13 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO10-1][The following information applies to the questions displayed below.]CommercialServices.com Corporation provides business-to-business services on the Internet. Dataconcerning the most recent year appear below:Sales$ 5,700,000Net operating income$ 285,000Average operating assets$ 950,000The following questions are to be considered independently.Exercise 10-13 Part 1 (Algo)Required:1. Compute the company's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2decimal places.)Return on investment (ROI)%

Required information Exercise 10-13 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO10-1] [The following information applies to the questions displayed below.] Commercial Services.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales Net operating income Average operating assets The following questions are to be considered independently. Exercise 10-13 Part 1 (Algo) $ 5,700,000 $ 285,000 $ 950,000 Required: 1. Compute the company's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI) %

Required information Exercise 10-13 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO10-1] [The following information applies to the questions displayed below.] Commercial Services.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales Net operating income Average operating assets The following questions are to be considered independently. Exercise 10-13 Part 1 (Algo) $ 5,700,000 $ 285,000 $ 950,000 Required: 1. Compute the company's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI) %

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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Problem 12-15 Return on Investment (ROI) and Residual Income [LO12-1, LO12-2] Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc.Balance Sheet BeginningBalance EndingBalance Assets Cash $ 129,000 $ 140,000 Accounts receivable 336,000 473,000 Inventory 561,000 477,000 Plant and equipment, net 834,000 810,000 Investment in Buisson, S.A. 400,000 432,000 Land (undeveloped) 254,000 247,000 Total assets $ 2,514,000 $ 2,579,000 Liabilities and Stockholders' Equity Accounts payable $ 384,000 $ 346,000 Long-term debt 967,000 967,000 Stockholders' equity 1,163,000 1,266,000 Total liabilities and stockholders' equity $ 2,514,000 $ 2,579,000 Joel de Paris, Inc.Income Statement Sales $ 4,324,000 Operating expenses 3,805,120 Net operating income 518,880 Interest and taxes: Interest expense 124,000 Tax expense 193,000 317,000 Net income $ 201,880…
PA10-1 (Algo) Calculating Return on Investment, Residual Income, Determining Effect of Changes Sales, Expenses, Invested Assets, Hurdle Rate on Each [LO 10-4, 10-5] Coolbrook Company has the following information available for the past year: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets The company's hurdle rate is 6.51 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for each division for each independent situation that follows: Complete this question by entering your answers in the tabs below. a. Operating income increases by 9 percent. b. Operating income decreases by 11 percent. c. The company invests $253,000 in each division, an amount that generates $110,000 additional income per division. d. Coolbrook changes its hurdle rate to 4.51 percent. Req 1 Req 2A Req 2B Req 2C River Division River Division $ 1,212,000 885,000 $…
< ces A family friend has asked for your help in analyzing the operations of three anonymous companies. Required: Supply the missing data in the tabulation below: (Negative amounts should be indicated with a minus sign.) Sales Net operating income Average operating assets Return on investment Minimum required rate of return: Percentage Dollar amount Residual income (loss) $ 10,870,000 $ 4,120,000 17 % 15 % Company B $ 6,800,000 $ 240,000 $ 15 % 320,000 % C $ 9,400,000 $ 5,200,000 $ 23 % 156,000 %
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Required information The Foundational 15 (Algo) [LO10-1, LO10-2] [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income. $ 1,200,000 320,000 880,000 640,000 $ 240,000 Average operating assets $ 600,000 At the beginning of this year, the company has a $150,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 240,000 50 % of sales $ 84,000 The company's minimum required rate of return is 15%. Foundational 10-9 (Algo) 9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Do not round intermediate calculations. Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) ROI %
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Required information The Foundational 15 (Algo) [LO10-1, LO10-2] [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,800,000 740,000 1,060,000 700,000 $ 360,000 $ 1,200,000 At the beginning of this year, the company has a $400,000 investment opportunity with the following cost and revenue characteristics: Sales $ 600,000 Contribution margin ratio Fixed expenses 60% of sales $ 288,000 The company's minimum required rate of return is 10%. Foundational 10-12 (Algo) 12. What is the residual income of this year's investment opportunity? Answer is complete but not entirely correct. Residual income $ 432,000 x
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10q-2
Exercise 6-11 (Algo) Segmented Income Statement [LO6-4] Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses as shown by its most recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) In an effort to resolve the problem, the company wants to prepare an income statement segmented by division. Accordingly, the Accounting Department provided the following information: Sales Variable expenses as a percentage of sales Traceable fixed expenses $ 1,601,000 649,870 951,130 1,046,000 $ (94,870) East $ 391,000 47% $ 269,000 Req 1 Complete this question by entering your answers in the tabs below. Req 2A Division Central $630,000 39% $ 326,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department believes increasing the West Division's monthly advertising by $29,000 will increase that division's sales by 12%.…
Subject:accounting