SquidGame Inc. presented the following information regarding its two divisions classified as investmentcenters.Operating IncomeOperating assetsNet salesJenny DivisionP 300,000Johnny DivisionP500,0002,500,0001,200,0001,500,000240,0002,750,000Current Liabilities375,000WACC15%12.5%Current operating asset500,000750,000The corporation is subject to a 35% tax rate. Weighted cost of capital is based on book value of long-term asset. Assuming the imputed interest rate is 18%.Required:1. In using ROI, what is the ROI of the division that is performing better?2. In using EVA, what is the EVA of the division that is performing better?

ROI in long terms stands for Rate of Interest. Basically ROI is charged on a amount which can be…

Answered: SquidGame Inc. presented the following…

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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E.F. Lynch Company is a diversified investment company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June 30, 20Y8, are as follows: Mutual FundDivision ElectronicBrokerageDivision InvestmentBankingDivision Fee revenue $1,360,000 $1,440,000 $1,330,000 Operating expenses 660,000 608,400 941,200 Invested assets 5,000,000 4,200,000 2,700,000 The management of E.F. Lynch Company is evaluating each division as a basis for planning a future expansion of operations. Required: Question Content Area 1. Prepare condensed divisional income statements for the three divisions, assuming that there were no support department allocations. E.F. Lynch CompanyDivisional Income StatementsFor the Year Ended June 30, 20Y8 MutualFundDivision ElectronicBrokerageDivision InvestmentBankingDivision Fee revenue Operating expenses Operating income…
4. Comment on the company’s ability to utilize its assets and manage its liabilities effectively using the following efficiency ratios a. Total Asset Turnoverb. Accounts Payable Turnoverc. Return on Total Assets (ROA)
Required:1. What was the net income after taxes of the property/casualty division?
what can you say about the asset management of the corporation based on the ratios?
he condensed balance sheet and income statement data for SymbiosisCorporation are presented below.SYMBIOSIS CORPORATIONBalance SheetsDecember 312014 2013 2012Cash $ 30,000 $ 24,000 $ 20,000Accounts receivable (net) 110,000 48,000 48,000Other current assets 80,000 78,000 62,000Investments 90,000 70,000 50,000Plant and equipment (net) 503,000 400,000 360,000$813,000 $620,000 $540,000 Current liabilities $ 98,000 $ 75,000 $ 70,000Long-term debt 130,000 75,000 65,000Common stock, $10 par 400,000 340,000 300,000Retained earnings 185,000 130,000 105,000$813,000 $620,000 $540,000SYMBIOSIS CORPORATIONIncome StatementsFor the Years Ended December 312014 2013Sales revenue $800,000 $750,000Less: Sales returns and allowances 40,000 50,000Net sales 760,000 700,000Cost of goods sold 420,000 406,000Gross profit 340,000 294,000Operating expenses (including income taxes) 230,000 209,000Net income $110,000 $ 85,000Additional information:1. The market price of Symbiosis common stock was $5.00, $3.50, and…
a. What net amount should be reported as OCI for the current year?b. What amount should be reported as comprehensive income for the current year?
1. What net amount should be reported as OCI for the current year? 2. What amount should be reported as comprehensive income for the current year?
The following are the composition of the total gross income of a domestic corporation which is subject to MCIT: sales (net of discount and allowances) 4,000,000.00 less: cost of sales 2,400,000.00 gross income dividends income 1,600,000.00 100,000.00 royalty income gain on sale of building total gross income 250,000.00 150,000.00 2,100,000.00 1. What is the regular corporate income tax, if the corporation has a total allowable deduction of 1,700,000? 2. What is the MCIT? 3. What is the minimum corporate income tax? MPG institute reported the following: related unrelated total 200,000.00 500,000.00 300,000.00 100,000.00 100,000.00 200,000.00 Gross income deductions taxable income 200,000.00 100,000.00 300,000.00 1. What is the tax due if the corporation is an exempt non-profit corporation? 2. Wht is the tax due if the corporation is a proprietary educational institution or non profit hospital?
prepare a common - size Consolidated Statements of Operations ( balance sheet)
You are required to calculate:1. Liquidity ratios 2. Solvency rations 3. Profitability ratios For the selected companies and shortly write your comments and findings.
CAREBEAR CORP. engages in five diversified operations namely, operations A, B, C, D, and E. Information on these segments are shown below: Segments Revenues Profit (loss) Assets A. 1,600 400 20,000 В 1,600 200 4,000 100 20 2,000 D 300 40 4,000 400 140 14,000 Totals 4,000 800 44,000 Additional information: 1. For internal reporting purposes, segments A and B are considered as one operating segment. 2. Segment E is considered as an operating segment for internal decision making purposes. 3. Segments C and D have similar economic characteristics and share a majority of the aggregation criteria. CAREBEAR shall report how many reportable segments? A. C. 4 5 D. 3 B.
EMBOSOM CHERISH Co. engages in five diversified operations namely, operations A, B, C, D, and E. Information on these segments are shown below: Profit (loss) 800 Segments Revenues Assets 3,200 40,000 A 3,200 400 8,000 B 200 40 4,000 600 80 8,000 D 800 280 24,000 8,000 1,600 84,000 Totals Additional information: a. For internal reporting purposes, segments A and B are considered as one operating segment. b. Segment E is considered as an operating segment for internal decision making purposes. c. Segments C and D have similar economic characteristics and share a majority of the aggregation criteria. 19. What are the reportable segments? а. А, В, С, D and E b. A, B and E c. A and B as one segment and E d. A and B as one segment, E, and C and D as one segment

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