General accounting question Riverstone Company has assembled the following data for its divisions for the past year:Division X Division YAverage operating assets$600,000 ?SalesNet operating incomeTurnover?$840,000$120,000$33,6001.53Margin?4%Minimum required rate of return 15%??$9,000Residual incomeDivision Y's average operating assets is:A. $252,000B. $2,520,000C. $210,000D. $280,000

Step 1: Definition of Average Operating AssetsAverage Operating Assets are the assets used by a…

Answered: Riverstone Company has assembled the…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...

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Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the following income statement for the last year: At the beginning of last year, Elway had 28,300,000 in operating assets. At the end of the year, Elway had 23,700,000 in operating assets. Required: 1. Compute average operating assets. 2. Compute the margin and turnover ratios for last year. (Note: Round the answer for margin ratio to two decimal places.) 3. Compute ROI. (Note: Round answer to two decimal places.) 4. CONCEPTUAL CONNECTION Briefly explain the meaning of ROI. 5. CONCEPTUAL CONNECTION Comment on why the ROI for Elway Company is relatively high (as compared to the lower ROI of a typical manufacturing company).
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Assume the Residential Division of Kipper Faucets had the following results last year: What is the division’s RI? a. $(140,000) b. $104,000 c. $140,000 d. $(104,000)
Consider the following data from two divisions of a company, P and Q: Divisional P Q Sales $ 1,100,000 $ 1,600,000 Operating Income $ 440,000 $ 960,000 Investment $ 1,870,000 $ 3,040,000 If the minimum rate of return is 12%, what is Division P's residual income (RI)? Multiple Choice $1,817,200. $215,600. $1,047,200. $664,400. $875,600.
What are division x's sales?
Consider the following data from two divisions of a company, P and Q: Divisional P Q Sales $ 2,000,000 $ 1,100,000 Operating Income $ 800,000 $ 660,000 Investment $ 3,200,000 $ 1,760,000 If the minimum rate of return is 9%, what is Division P's residual income (RI)?
Kyle Corporation provides the following information for the Product Division and Service Division for the year. Product Division Service Division 420,000 $ 650,000 195,000 245,000 640,000 610,000 14.0% 14.0% Net sales Operating income Average total assets Target rate of return $ Requirement 1. Calculate the return on investment for each division. (Enter answers as a percent rounded to the nearest hundredth percent, X.XX%) The return on investment for the Product Division is The return on investment for the Service Division is Requirement 2. Which division has the highest ROI? % % Requirement 3. Calculate the residual income for each division. (Round answers to the nearest whole dollar.) The residual income for the Product Division is The residual income for the Service Division is Requirement 4. Which division has the highest residual income?
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A company has the following information available for three of its divisions. COMPANY INFORMATION FOR THREE DIVISIONS Division M Investment in Assets $ 1,200,000 Division N ? Division O $ 2,500,000 Operating Income Sales Revenue ? $ 160,000 250,000 ? $ 3,200,000 ? Profit Margin Ratio 10.00% ? 6.25% Required Rate of Return 10.00% 12.50% 15.00% Return on Investment 15.00% 20.00% ? What is Division O's sales revenue? $1,666,667. $4,000,000. $2,000,000. $ 375,000.
Assume the Residential Division of Kopper Faucets had the following results last year: Net sales revenue Operating income Average total assets Management's target rate of return What is the division's ROI? OA. 48% OB. 15% O C. 320% OD. 208% $ 16,000,000 2,400,000 5,000,000 15% ***

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