**Responsibility Accounting and Performance Evaluation** **Using Excel for Key Performance Indicators (KPIs)** The US Solar Company has data for the four divisions for the year and wants the results for the three specified key performance indicators (KPIs). | Division | Net Sales | Variable Costs | Fixed Costs | Average Total Assets | Profit Margin Ratio | Asset Turnover Ratio | Return on Investment (ROI) | |----------|-----------|----------------|-------------|----------------------|---------------------|----------------------|----------------------------| | East | 27,070,000.00 | 15,441,300.00 | 10,294,200.00 | 12,270,250.00 | | | | | North | 5,770,000.00 | 3,162,600.00 | 2,108,400.00 | 4,230,000.00 | | | | | South | 897,870.00 | 410,016.60 | 273,344.00 | 1,251,290.00 | | | | | West | 9,730,000.00 | 4,616,300.00 | 2,944,200.00 | 13,620,000.00 | | | | The table above details the financial performance of four divisions (East, North, South, West) within the US Solar Company. It shows key financial metrics including Net Sales, Variable Costs, Fixed Costs, and Average Total Assets. The company aims to calculate and analyze three key performance indicators: Profit Margin Ratio, Asset Turnover Ratio, and Return on Investment (ROI) for each division. These metrics are critical for assessing the profitability and efficiency of each division. ### Financial Performance Table This table presents a financial performance analysis based on various metrics. Below is a detailed description of each column in the dataset: | **Operating Income** | **Average Total Assets** | **Net Sales** | **Profit Margin Ratio** | **Asset Turnover Ratio** | **Return on Investment (ROI)** | |------------------------|--------------------------|-----------------------|-------------------------|--------------------------|---------------------------------| | 12,270,250.000 | 27,070,000.000 | | | | | | 4,230,000.000 | 5,770,000.000 | | | | | | 1,251,290.000 | 897,870.000 | | | | | | 13,620,000.000 | 9,730,000.000 | | | | | ### Explanation of Columns: - **Operating Income**: This column shows the earnings before interest and taxes. It's a useful indicator of a company’s profitability from regular operations. - **Average Total Assets**: Represents the mean value of a company’s assets over a given period, which is crucial for understanding the scale of the company's operations. - **Net Sales**: Denotes the revenue from goods sold or services provided, minus any returns or allowances. - **Profit Margin Ratio**: Indicates what percentage of sales has turned into profits. It is a vital measure of profitability. - **Asset Turnover Ratio**: Reflects how efficiently a company uses its assets to generate sales revenue. - **Return on Investment (ROI)**: Measures the gain or loss generated relative to the investment’s cost. ### Purpose: This table can be used to analyze the operational efficiency and profitability of a company and can serve as a basis for strategic financial planning and decision-making.
**Responsibility Accounting and Performance Evaluation** **Using Excel for Key Performance Indicators (KPIs)** The US Solar Company has data for the four divisions for the year and wants the results for the three specified key performance indicators (KPIs). | Division | Net Sales | Variable Costs | Fixed Costs | Average Total Assets | Profit Margin Ratio | Asset Turnover Ratio | Return on Investment (ROI) | |----------|-----------|----------------|-------------|----------------------|---------------------|----------------------|----------------------------| | East | 27,070,000.00 | 15,441,300.00 | 10,294,200.00 | 12,270,250.00 | | | | | North | 5,770,000.00 | 3,162,600.00 | 2,108,400.00 | 4,230,000.00 | | | | | South | 897,870.00 | 410,016.60 | 273,344.00 | 1,251,290.00 | | | | | West | 9,730,000.00 | 4,616,300.00 | 2,944,200.00 | 13,620,000.00 | | | | The table above details the financial performance of four divisions (East, North, South, West) within the US Solar Company. It shows key financial metrics including Net Sales, Variable Costs, Fixed Costs, and Average Total Assets. The company aims to calculate and analyze three key performance indicators: Profit Margin Ratio, Asset Turnover Ratio, and Return on Investment (ROI) for each division. These metrics are critical for assessing the profitability and efficiency of each division. ### Financial Performance Table This table presents a financial performance analysis based on various metrics. Below is a detailed description of each column in the dataset: | **Operating Income** | **Average Total Assets** | **Net Sales** | **Profit Margin Ratio** | **Asset Turnover Ratio** | **Return on Investment (ROI)** | |------------------------|--------------------------|-----------------------|-------------------------|--------------------------|---------------------------------| | 12,270,250.000 | 27,070,000.000 | | | | | | 4,230,000.000 | 5,770,000.000 | | | | | | 1,251,290.000 | 897,870.000 | | | | | | 13,620,000.000 | 9,730,000.000 | | | | | ### Explanation of Columns: - **Operating Income**: This column shows the earnings before interest and taxes. It's a useful indicator of a company’s profitability from regular operations. - **Average Total Assets**: Represents the mean value of a company’s assets over a given period, which is crucial for understanding the scale of the company's operations. - **Net Sales**: Denotes the revenue from goods sold or services provided, minus any returns or allowances. - **Profit Margin Ratio**: Indicates what percentage of sales has turned into profits. It is a vital measure of profitability. - **Asset Turnover Ratio**: Reflects how efficiently a company uses its assets to generate sales revenue. - **Return on Investment (ROI)**: Measures the gain or loss generated relative to the investment’s cost. ### Purpose: This table can be used to analyze the operational efficiency and profitability of a company and can serve as a basis for strategic financial planning and decision-making.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Need help with Operating income. What is the formula using the data in the pictures.
Transcribed Image Text:**Responsibility Accounting and Performance Evaluation**
**Using Excel for Key Performance Indicators (KPIs)**
The US Solar Company has data for the four divisions for the year and wants the results for the three specified key performance indicators (KPIs).
| Division | Net Sales | Variable Costs | Fixed Costs | Average Total Assets | Profit Margin Ratio | Asset Turnover Ratio | Return on Investment (ROI) |
|----------|-----------|----------------|-------------|----------------------|---------------------|----------------------|----------------------------|
| East | 27,070,000.00 | 15,441,300.00 | 10,294,200.00 | 12,270,250.00 | | | |
| North | 5,770,000.00 | 3,162,600.00 | 2,108,400.00 | 4,230,000.00 | | | |
| South | 897,870.00 | 410,016.60 | 273,344.00 | 1,251,290.00 | | | |
| West | 9,730,000.00 | 4,616,300.00 | 2,944,200.00 | 13,620,000.00 | | | |
The table above details the financial performance of four divisions (East, North, South, West) within the US Solar Company. It shows key financial metrics including Net Sales, Variable Costs, Fixed Costs, and Average Total Assets. The company aims to calculate and analyze three key performance indicators: Profit Margin Ratio, Asset Turnover Ratio, and Return on Investment (ROI) for each division. These metrics are critical for assessing the profitability and efficiency of each division.
Transcribed Image Text:### Financial Performance Table
This table presents a financial performance analysis based on various metrics. Below is a detailed description of each column in the dataset:
| **Operating Income** | **Average Total Assets** | **Net Sales** | **Profit Margin Ratio** | **Asset Turnover Ratio** | **Return on Investment (ROI)** |
|------------------------|--------------------------|-----------------------|-------------------------|--------------------------|---------------------------------|
| 12,270,250.000 | 27,070,000.000 | | | | |
| 4,230,000.000 | 5,770,000.000 | | | | |
| 1,251,290.000 | 897,870.000 | | | | |
| 13,620,000.000 | 9,730,000.000 | | | | |
### Explanation of Columns:
- **Operating Income**: This column shows the earnings before interest and taxes. It's a useful indicator of a company’s profitability from regular operations.
- **Average Total Assets**: Represents the mean value of a company’s assets over a given period, which is crucial for understanding the scale of the company's operations.
- **Net Sales**: Denotes the revenue from goods sold or services provided, minus any returns or allowances.
- **Profit Margin Ratio**: Indicates what percentage of sales has turned into profits. It is a vital measure of profitability.
- **Asset Turnover Ratio**: Reflects how efficiently a company uses its assets to generate sales revenue.
- **Return on Investment (ROI)**: Measures the gain or loss generated relative to the investment’s cost.
### Purpose:
This table can be used to analyze the operational efficiency and profitability of a company and can serve as a basis for strategic financial planning and decision-making.
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education