Determining missing items in return on investment computationOne item is omitted from each of the following computations of the return on investment:Return on Investment=Profit MarginxInvestment Turnover27 % =10 % x(a) (b) =16 % x0.75 24 % =(c) x1.5 14 % =20 % x(d) (e) =15 % x1.8 Determine the missing items identified by the letters as shown above. If required, round your answers to two decimal places.(a)fill in the blank 1(b)fill in the blank 2 %(c)fill in the blank 3 %(d)fill in the blank 4(e)fill in the blank 5 %

Return on investment is an accounting metric used to express the net income as a percentage of…

Answered: return on investment computation

Business

Accounting

return on investment computation

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: Define each of the following terms:c. Aging schedule; days sales outstanding (DSO)

A: Aging schedules:These are accounting tables.It helps various firms in spotting the issues with their…

Q: ces Elsa Products processes Chem-Z into two products: Chem-A and Chem-B. Chem-Z costs $41,200 per…

A: Physical Method of Joint Cost Allocation :— It is one of the method used to allocate joint cost…

Q: Discuss the three common Valuation Approaches, their applications, and give an example of Valuation…

A: Valuation Approaches The asset approach, income approach, and market approach are the three methods…

Q: EBITDA removes which of the following from the operating income number? a. Significant variable and…

A: Earnings Before Interest, Taxes, Depreciation, and Amortization is referred to as EBITDA. It is a…

Q: When using a segmented income statement, what is the best number to look at to determine the effect…

A: An income statement is prepared by the business organizations so as to know how much amount of…

Q: When should a company recognize revenue under GAAP? Multiple Choice When the promised performance…

A: According to generally accepted accounting principles (GAAP), the following two criteria must be…

Q: revaluation result

A: If there is a revaluation surplus, it should be credited to other comprehensive income statement. If…

Q: Fill in the missing amounts in each of the eight case situations below. Each case is independent of…

A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…

Q: A family friend has asked your help in analyzing the operations of three anonymous companies…

A: Return on investment (ROI) is a financial ratio used to calculate the benefit an investor will…

Q: How will increases in the following items affect residual income? Increase in Increase in Sales…

A: The net income is calculated as difference between revenue and expenses. The residual income is…

Q: Which are formulas for ROI? (check all that apply) Sales-Profit Margin Net Operating Income /…

A: Net operating income is the income generated by a company's operations after deducting operating…

Q: The residual income approach to measuring divisional performance measurement is closely related to…

A: Residual income approach refers to the net income measurement that the investment earns above the…

Q: Return on investment (ROI) could be calculated using which of the following formulas Multiple Choice…

A: The ratio analysis helps to analyse the financial statements of the business on the basis of the…

Q: Fill in the missing amounts in each of the eight case situations below. Each case is independent of…

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

Q: Which of the following measures the number of dollars of sales produced per dollar of fixed assets?…

A: Fixed Asset Turnover ratio = The definition of fixed asset turnover analysis and ratio shows what…

Q: The residual income approach to measuring divisional performance measurement is closely related to…

A: Residual income approach is used to compute residual income which comes after deducting the equity…

Q: Data for Divisions A, B, C, D, and E are as follows: a. Determine the missing items. Round…

A: Return on investment = Net income / Average investment Profit margin = Net income / Sales Investment…

Q: For which of the following cost flow methods does generally accepted accounting principles require…

A: Ans. In case of Inventories, it is generally accepted accounting principles is to measure at cost or…

Q: owe Tool and Die (RTD) produces metal fittings as a supplier to various manufacturing firms in the…

A: Operating Profit -The revenue generated by a company's main activities, minus any financing or…

Q: For income statement purposes, depreciation is a variable expense if the depreciation method used is…

A: For income statement purposes, depreciation is a variable expense if the depreciation method used is…

Q: Calculate the missing values and express the answers rounded to two decimal places.

A: Total cost of manufacturing an item in particular period can be computed by adding up the total…

Q: 10-1 Return on investment usually consists of which two components? Select one: a. dividends and…

A: Explanation- Return on investment (ROI) or return on costs (ROC) is a period by comparing net income…

Q: [The following information applies to the questions displayed below.] Marfar Industries produces…

A: Return on investment :— It is calculated by dividing net operating income by average operating…

Q: Assume a company reported the following information: Sales Minimum required rate of return on…

A: Residual income is the profit earned above the minimum expected return on invested capital,…

Q: Deuk Seon have the following investment centers. Several items are missing from the following table…

A: Rate of return on investments means income from operations earned on invested assets. Residual…

Q: 8. A net loss will result during a time period when a. liabilities exceed assets. b. drawings exceed…

A: A net loss will result during a time period when expenses exceed revenues. This is because the net…

Q: Return on investment is often expressed as follows: Controllable margin Average operating assets…

A: Ratios are very helpful in decision making process in the business. It makes use of financial…

Q: Residual income is: A. The excess of operating income over the minimum operating income required…

A: Operating income :— It is the difference between total revenue and total operating expenses.…

Q: 4,500,000 795,000 2,400,000 Division C Division D 6,800,000 795,000 2,700,000 Required: (a) Using…

A: Profit margin is the margin earned on sales of the business. Investment turnover shows ratio of…

Q: Exercise 10-8 (Algo) Segment elimination LO P4 Marin Company makes several products, including…

A: DIFFERENTIAL ANALYSISDifferential analysis is a decision-making method that examines the net effects…

Q: Select the best answer from the five listed below to fill in the blank The residual income approach…

A: Residual Income is the excess of net income over deduction for cost of equity. Dwduction of equity…

Q: Investment Center Sales Net income Average invested assets Profit margin Investment turnover Return…

A: Return on investment helps in measuring the performance by evaluating the profit and efficiency of…

Q: The depreciation method that can be most easily manipulated is the: Group of answer choices…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which will create the most favorable effect in gross profit A. 10% increase in selling price B. 10%…

A: Assume Selling price. = 120 Costs: Production cost…

Q: What do you wish to assume for the interest rate? >>>> Operating income Operating assets Assumed…

A: It basically refers to the excess earned over the Operating Income of the firm ober its Cost of…

Q: Which of the following is not a measure used by the financial perspective lens of the balanced…

A: A balanced business scorecard consists of four perspectives: Financial perspective customer…

Q: 1. The value deducted from the revenue stream, which usually has no obligation toward covering…

A: Disclaimer: Since you have asked multiple questions we have answer first question please upload…

Q: The following are covered limitations of annual worth method except: a. uniform revenue b. single…

A: "Annual worth is defined as the equivalent uniform annual worth of all estimated receipts (income)…

Q: Responsibility Accounting and Performance Evaluation Using Excel for key performance indicators…

A: Since you have specifically asked for operating income, we are answering the same for you.Operating…

Q: Which of the following statements about CVP analysis is false? O a. Unit selling price, unit…

A: CVP analysis appearance at the impact of sales volume variations on prices and operative profit. The…

Question

Determining missing items in return on investment computation

One item is omitted from each of the following computations of the return on investment:

Return on Investment	=	Profit Margin	x	Investment Turnover
27 %		=	10 %		x	(a)
(b)		=	16 %		x	0.75
24 %		=	(c)		x	1.5
14 %		=	20 %		x	(d)
(e)		=	15 %		x	1.8

Determine the missing items identified by the letters as shown above. If required, round your answers to two decimal places.

(a)	fill in the blank 1
(b)	fill in the blank 2 %
(c)	fill in the blank 3 %
(d)	fill in the blank 4
(e)	fill in the blank 5 %

Formula Formula ROI (%) = Net Income Principal Amount × 100

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Return on Investment

VIEW

Calculation of missing items

VIEW

Answer

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

DONT GIVE ANSWER IN IMAGE FORMAT
26..
When using data from a segmented income statement, the dollar sales for a segment to break even is equal to: Multiple Choice Common fixed expenses ÷ Segment CM ratio Traceable fixed expenses ÷ Segment CM ratio Non-traceable fixed expenses ÷ Segment CM ratio (Traceable fixed expenses + Common fixed expenses) ÷ Segment CM ratio
Q.3.5 Complete the following table by filling in the missing amounts: (6) Mark-up on Cost Price Profit Selling Price Cost (excluding VAT) (excluding VAT) (excluding VAT) 25% 1 000 100% 6 000 1 500 2 500
Your answer is incorrect. Divide the estimated average annual income by the average investment. Investment cost plus residual value, divided by two, equals average investment. Can you please redo it? Thanks
The break-even point is the point in the volume of activity where the organization's revenues and expenses are Select one: a. Varied b. Equal C. Fixed d. Not equal
DONT GIVE ANSWER IN IMAGE FORMAT
What is the most likely impact on return on assets of a decrease in PP&E turnover, all else equal? - no change - increase - decrease
Pa help po. Salamat
4 ..... please help me