Return on Investment and Residual Income Johnson Company has two sources of funds: long-term debt and equity capital. Johnson Company has profit centers in the following locations with the following net incomes and total assets: Las Vegas Dallas Net Income Assets $710,000 $4,000,000 950,000 8,000,000 Tampa 1,790,000 12,000,000 a. Calculate ROI for each profit center and rank them from highest to lowest based on ROI. Round ROI to the nearest whole percentage. Las Vegas Dallas Tampa ROI Rank 0% 0% 0% ÷ b. Calculate residual income for each profit center based on a desired ROI of 5% and rank them from highest to lowest based on residual income. Las Vegas $ RI 0 Rank Dallas Tampa Check 0 0 ÷

Return on Investment and Residual Income Johnson Company has two sources of funds: long-term debt and equity capital. Johnson Company has profit centers in the following locations with the following net incomes and total assets: Las Vegas Dallas Net Income Assets $710,000 $4,000,000 950,000 8,000,000 Tampa 1,790,000 12,000,000 a. Calculate ROI for each profit center and rank them from highest to lowest based on ROI. Round ROI to the nearest whole percentage. Las Vegas Dallas Tampa ROI Rank 0% 0% 0% ÷ b. Calculate residual income for each profit center based on a desired ROI of 5% and rank them from highest to lowest based on residual income. Las Vegas $ RI 0 Rank Dallas Tampa Check 0 0 ÷

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 3PB: The income statement comparison for Rush Delivery Company shows the income statement for the current...

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Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested assets of 180,000, and sales of 720,000. Use the DuPont formula to compute the return on investment and show (A) the profit margin, (B) the investment turnover, and (C) the return on investment.
Return on Investment and Residual IncomeJohnson Company has two sources of funds: long-term debt and equity capital. Johnson Company has profit centers in the following locations with the following net incomes and total assets: Net Income Assets Las Vegas $1,160,000 $4,000,000 Dallas 1,400,000 8,000,000 Tampa 2,240,000 12,000,000 a. Calculate ROI for each profit center and rank them from highest to lowest based on ROI. Round ROI to the nearest whole percentage. ROI Rank Las Vegas Answer Answer Dallas Answer Answer Tampa Answer Answer b. Calculate residual income for each profit center based on a desired ROI of 5% and rank them from highest to lowest based on residual income. ROI Rank Las Vegas Answer Answer Dallas Answer Answer Tampa Answer Answer
Return on Investment and Residual Income Johnson Company has two sources of funds: long-term debt and equity capital. Johnson Company has profit centers in the following locations with the following net incomes and total assets: Net Income Assets Las Vegas $1,260,000 $4,000,000 Dallas 1,500,000 8,000,000 Tampa 2,340,000 12,000,000 a. Calculate ROI for each profit center and rank them from highest to lowest based on ROI. Round ROI to the nearest whole percentage. ROI Las Vegas Dallas Tampa 0% 0% 0% Las Vegas $ Dallas Tampa b. Calculate residual income for each profit center based on a desired ROI of 5% and rank them from highest to lowest based on residual income. RI Rank Rank 0 0 0 ♦
Return on Investment and Residual Income Johnson Company has two sources of funds: long-term debt and equity capital. Johnson Compary has profit centers in the following locations with the following net incomes and total assets: \table[[,Net Income,Assets],[Las Vegas,$960,000,$4,000,000
Johnson Company has two sources of funds: long-term debt and equity capital. Johnson Company has profit centers in the following locations with the following net incomes and total assets: Net Income Assets Las Vegas $1,260,000 $4,000,000 Dallas 1,500,000 8,000,000 Tampa 2,340,000 12,000,000 a. Calculate ROI for each profit center and rank them from highest to lowest based on ROI. Round ROI to the nearest whole percentage. ROI Rank Las Vegas Answer Answer123 Dallas Answer Answer123 Tampa Answer Answer123 b. Calculate residual income for each profit center based on a desired ROI of 5% and rank them from highest to lowest based on residual income. ROI Rank Las Vegas Answer Answer123 Dallas Answer Answer123 Tampa Answer Answer123
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 %
For its three investment centers, Ayayai Company accumulates the following data: Sales Controllable margin Average operating assets $2,480,000 1,736,000 6,200,000 The return on investment 11 $4,960,000 2.480,000 9,920.000 Compute the return on investment (ROI) for each center. 25 % 111 $4,960,000 4,464,000 12.400.000 11 21.43 m 24 96
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For its three investment centers, Gerrard Company accumulates the following data: I II III Sales $2,062,000 $3,914,000 $3,905,000 Controllable margin 848,640 2,161,620 4,103,120 Average operating assets 4,992,000 8,006,000 12,068,000 Compute the return on investment (ROI) for each center. I II III The return on investment % % % eTextbook and Media
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