Required information [The following information applies to the questions displayed below] The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Income $4,500,000 1,500,000 500,000 Average Assets $20 12,500,000 10, mpute return on investment for each investment center. Which center performed the best based on return on investment? Complete this question by entering your answers in the tabs below. Return on Performance vestment Based on ROI ompute return on investment for each investment center. Ote: Round your final answer to 1 decimal place. Investment Center meras nes Income Average Assets Return on Investment $ 4,500,000 $20,000,000 1,500,000 12,500,000 800 000 10,000,000 %

Required information [The following information applies to the questions displayed below] The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Income $4,500,000 1,500,000 500,000 Average Assets $20 12,500,000 10, mpute return on investment for each investment center. Which center performed the best based on return on investment? Complete this question by entering your answers in the tabs below. Return on Performance vestment Based on ROI ompute return on investment for each investment center. Ote: Round your final answer to 1 decimal place. Investment Center meras nes Income Average Assets Return on Investment $ 4,500,000 $20,000,000 1,500,000 12,500,000 800 000 10,000,000 %

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The following information is related to the current operation of Kenanga Branch. Operating income 5,000,000 Sales revenue 62, 500,000 Average operating asset 25,000,000 Average balance in current liabilities 13,400,000 The management of the company has decided that the minimum return required is 11 percent. Residual income is another approach that can be used to measure performance of an investment centre. Define residual income and determine the residual income for Kenanga Branch.
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Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year: Sales $ 780,000 Net operating income $ 17,940 Average operating assets $ 100,000 The following questions are to be considered independently. 2. Assume that the manager of the club is able to increase sales by $78,000 and that, as a result, net operating income increases by $6,084. Further assume that this is possible without any increase in average operating assets. What would be the club's return on investment (ROI)? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI) %
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For its three investment centers, Indigo Company accumulates the following data: Sales Controllable margin Average operating assets 1 $2,400,000 $4,800,000 $4,800,000 1,560,000 2.208,000 6,000,000 9,600,000 The return on investment i 11 Compute the return on investment (ROI) for each center. % 111 4,080,000 12,000,000 HE %
Fill in the blanks in the schedule below for two separate Investment centers A and B. Note: Round your final answers to 1 decimal place. Investment Center B A Sales $ 10,400,000 Income $ 240,000 Average assets $ 1,200,000 Profit margin 8.0% Investment turnover Return on investment 20 12.0%
A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Loss amounts should be indicated by a minus sign. Round your percentage answers to nearest whole percent and other amounts to whole dollars.) Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual income $ $ A 500,000 164,000 21 % 13 % $ $ $ Company B 760,000 35,000 19 % 53,000 % C $ 510,000 $ $ 151,000 % 9 % 6,000
Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year: Sales Net operating income Average operating assets 720,000 $ 12,240 $ 100,000 The following questions are to be considered independently. Assume that the manager of the club is able to increase sales by $72,000 and that, as a result, net operating income increases by $5.184. Further assume that this is possible without any increase in average operating assets. What would be the club's return on investment (ROI)?
Profit Margin, Investment Turnover, and ROI Briggs Company has operating income of $13,824, invested assets of $96,000, and sales of $230,400. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin ? b. Investment turnover ? c. Return on investment ?
The managers of the XYZ clubs, who have the authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's X Club reported the following results for the past year: Sales Net operating income Average operating assets $ 730,000 $ 13, 140 $ 100,000 The following questions are to be considered independently. 2. Assume that the manager of the club is able to increase sales by $73,000 and that, as a result, net operating income increases by $5,329. Further assume that this is possible without any increase in average operating assets. What would be the club's return on investment (ROI)? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI) %
Profit Margin, Investment Turnover, and ROI Cash Company has income from operations of $49,896, invested assets of $198,000, and sales of $712,800. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin fill in the blank 1% b. Investment turnover fill in the blank 2 c. Return on investment fill in the blank 3%
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