that Excel will recognize the text as a "string of text" instead of another function. From the Excel Simulation below, if in a cell =F(G10>20,"Total cost is High"."Total cost is low") was entered, the formula would output the result of the value_if_tr since the test_condition would be result as true, or in this case the text "Total cost is high". Excel processes the IF functio separating it out into separate parts. First the test_condition - Excel thinks, find cell GI0 and determine if the value is gre than 20. Once Excel determines if the result of that test condition is TRUE or FALSE, it will return the value_it_true or value_Lfalse. Return on Investment (RO) and Residual Income - Excel REVIEW Sign in FILE HOME INSERT PAGE LAYOUT FORMULAS DATA VIEW Calibri 11 A A Paste Alignment Number Conditional Format as Cell Formatting- Table- Styles- BIU- Cels Clipboard Font Styles Adams Corporation evaluates divisional managers based on ROI. Operating A1 11 12 The Northern Division has an opportunity to add a new product line at the beginning of the year as follows: 4 Average required investment Net operating income 2,500,000 400,000 L6 17 Adams Corporation's minimum acceptable rate of return 15% 9 Compute the following: 1 Northern Division ROI for last year 22 3 Northem Division ROI if new product line is added 24 s write an IF statement to determine whether the Northern Division 6 manager will ACCEPT or REJECT the new product line based on ROI. 27 8 Northerm Division residual income for last year 19 10 Northern Division residual income if the new product line is added 12 Write an IF statement to determine whether the Northern Division manager 13 will ACCEPT or REJECT the new product line based on residual income 14 Sheeti

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Could you get the formula also? thanks 

used in the testcondition, value_i_true, or value_f false arguments then the text itself should be entered in quotations so
that Excel will recognize the text as a "string of text" instesd of another function. From the Excel Simulation below, if in a blar
cell =F(G10>20, Total cost is High","Total cost is low") was entered, the formula would output the result of the value_if_true
since the test_condition would be result es true, or in this case the text "Total cost is high". Excel processes the IF function b
separating it out into separste parts. First the test_condition- Excel thinks, find cell G10 and detemine if the value is greate
than 20. Once Excel determines if the result of that test_condition is TRUE or FALSE, it will return the value_if_true or
value_if_folse.
Return on Investment (ROI) and Residual Income - Excel
FILE
HOME
INSERT
PAGE LAYOUT
FORMULAS
DATA
REVIEW
VIEW
Sign In
Calibri
11
%
Alignment Number Conditional Format as
Formatting- Table Styles-
Paste
BIU-
Cell
Cels
Clipboard
Font
Styles
A1
Adams Corporation evaluates divisional managers based on ROI. Operating
D
E
11
12 The Northern Division has an opportunity to add a new product line at the beginning of the year as follows:
13
Average required investment
Net operating income
14
2,500,000
15
400,000
16
17 Adams Corporation's minimum acceptable rate of return
15%
18
19 compute the following:
20
21 Northern Division ROI for last year
22
23 Northern Division ROI if new product line is added
24
25 Write an IF statement to determine whether the Northern Division
26 manager willl ACCEPT or REJECT the new product line based on ROI.
27
28 Northern Division residual income for last year
29
30 Northern Division residual income if the new product line is added
31
32 write an IF statement to determine whether the Northern Division manager
33 will ACCEPT or REJECT the new product line based on residual income
34
Sheeti
READY
100%
Attempt(s)
Hint
Transcribed Image Text:used in the testcondition, value_i_true, or value_f false arguments then the text itself should be entered in quotations so that Excel will recognize the text as a "string of text" instesd of another function. From the Excel Simulation below, if in a blar cell =F(G10>20, Total cost is High","Total cost is low") was entered, the formula would output the result of the value_if_true since the test_condition would be result es true, or in this case the text "Total cost is high". Excel processes the IF function b separating it out into separste parts. First the test_condition- Excel thinks, find cell G10 and detemine if the value is greate than 20. Once Excel determines if the result of that test_condition is TRUE or FALSE, it will return the value_if_true or value_if_folse. Return on Investment (ROI) and Residual Income - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri 11 % Alignment Number Conditional Format as Formatting- Table Styles- Paste BIU- Cell Cels Clipboard Font Styles A1 Adams Corporation evaluates divisional managers based on ROI. Operating D E 11 12 The Northern Division has an opportunity to add a new product line at the beginning of the year as follows: 13 Average required investment Net operating income 14 2,500,000 15 400,000 16 17 Adams Corporation's minimum acceptable rate of return 15% 18 19 compute the following: 20 21 Northern Division ROI for last year 22 23 Northern Division ROI if new product line is added 24 25 Write an IF statement to determine whether the Northern Division 26 manager willl ACCEPT or REJECT the new product line based on ROI. 27 28 Northern Division residual income for last year 29 30 Northern Division residual income if the new product line is added 31 32 write an IF statement to determine whether the Northern Division manager 33 will ACCEPT or REJECT the new product line based on residual income 34 Sheeti READY 100% Attempt(s) Hint
Adams Corporation evalustes divisional managers based on Retum on Investment (ROI) and has provided the opersting results of the
Northern Division from last year. The Controller has esked you to compute the ROI and Residual Income besed on data from last year
and if the division adds a new product line. Use the information included in the Excel Simulation and the Excel functions described
below to complete the task.
Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank
cell, "=G5" was entered, the formulo would output the result from cell G5, or 4.00 in this example.
Basic Math functions: Allows you to use the basic math symbols to perform mathemotical functions. You can use the following
keys: + (plus sign to add). - (minus sign to subtract). * (asterisk sign to multiply), and / (forwerd slash to divide). From the Excel
Simulstion below, if in a blank cell =G5-G6" wos entered, the formula would add the values from those cells and output the
result, or 10.00 in this example. If using the other math symbols the result would output an appropriste answer for its function.
SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to
utilize this function. From the Excel Simulation below, if in a blonk cell "=SUM(G5,66,G7)" wes entered, the formula would
output the result of adding those three separate cells, or 12.00 in this example. Similarly, if in a blank cell =SUM(G5:G7)" was
entered, the formula would output the same result of adding those cells, except they are expressed es a range in the formuls,
and the result would be 12.00 in this example.
IF function: Allows you to test a condition and return a specific value is the result is true and different value if the result is
false. The syntax of the IF function is "=IF(test_condition,value_if_true,value_if_false)" and specific considerstions need to be
made when using this function. The test_condition argument is an evaluation of the status of a cell, such es if the value of a cell
is greater than, less than, or equal to another number or cell. The value_it_true and value_it_false arguments will return any
specific result for each option, such as another cell reference, a value, or text. Throughout the entire equation, if text is being
used in the test_condition, value_iLtrue, or value_ffalse orguments then the text itself should be entered in quotations so
that Excel will recognize the text as a "string of text" instesd of another function. From the Excel Simulation below, if in a blank
cell "=F(G10-20,"Total cost is High","Total cost is lovw") was entered, the formula would output the result of the value_if_true
since the test_condition would be result es true, or in this case the text "Total cost is high". Excel processes the IF function by
separsting it out into separste parts. First the test_condition- Excel thinks, find cell G10 and detemine if the value is greater
than 20. Once Excel determines if the result of that test condition is TRUE or FALSE, it will return the value_it_true or
value_it_folse.
Return on Investment (ROI) and Residual Income - Excel
FILE
HOME
INSERT
PAGE LAYOUT
FORMULAS
DATA
REVIEW
VIEW
Sign in
Calibri
11
A A
Alignment Number Conditional Format as
Cell
Paste
BIU-
Cells
Formatting - Table Styles-
Clipboard
Font
Styles
A1
Adams Corporation evaluates divisional managers based on ROI. Operating
B
D
E
pams corporatiorevaiuates aiviSionai managers Daseo on KUI. Uperanng resuits Tor tne
ɔmpany's Northern Division for last year are given below:
2
4
Sales
27,000,000
Variable expenses
16,200,000
6
Contribution margin
10,800,000
Fixed expenses
8,805,000
1.995.000
Net operating income
10
Average divisional operating assets
9.500.000
11
Transcribed Image Text:Adams Corporation evalustes divisional managers based on Retum on Investment (ROI) and has provided the opersting results of the Northern Division from last year. The Controller has esked you to compute the ROI and Residual Income besed on data from last year and if the division adds a new product line. Use the information included in the Excel Simulation and the Excel functions described below to complete the task. Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell, "=G5" was entered, the formulo would output the result from cell G5, or 4.00 in this example. Basic Math functions: Allows you to use the basic math symbols to perform mathemotical functions. You can use the following keys: + (plus sign to add). - (minus sign to subtract). * (asterisk sign to multiply), and / (forwerd slash to divide). From the Excel Simulstion below, if in a blank cell =G5-G6" wos entered, the formula would add the values from those cells and output the result, or 10.00 in this example. If using the other math symbols the result would output an appropriste answer for its function. SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. From the Excel Simulation below, if in a blonk cell "=SUM(G5,66,G7)" wes entered, the formula would output the result of adding those three separate cells, or 12.00 in this example. Similarly, if in a blank cell =SUM(G5:G7)" was entered, the formula would output the same result of adding those cells, except they are expressed es a range in the formuls, and the result would be 12.00 in this example. IF function: Allows you to test a condition and return a specific value is the result is true and different value if the result is false. The syntax of the IF function is "=IF(test_condition,value_if_true,value_if_false)" and specific considerstions need to be made when using this function. The test_condition argument is an evaluation of the status of a cell, such es if the value of a cell is greater than, less than, or equal to another number or cell. The value_it_true and value_it_false arguments will return any specific result for each option, such as another cell reference, a value, or text. Throughout the entire equation, if text is being used in the test_condition, value_iLtrue, or value_ffalse orguments then the text itself should be entered in quotations so that Excel will recognize the text as a "string of text" instesd of another function. From the Excel Simulation below, if in a blank cell "=F(G10-20,"Total cost is High","Total cost is lovw") was entered, the formula would output the result of the value_if_true since the test_condition would be result es true, or in this case the text "Total cost is high". Excel processes the IF function by separsting it out into separste parts. First the test_condition- Excel thinks, find cell G10 and detemine if the value is greater than 20. Once Excel determines if the result of that test condition is TRUE or FALSE, it will return the value_it_true or value_it_folse. Return on Investment (ROI) and Residual Income - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign in Calibri 11 A A Alignment Number Conditional Format as Cell Paste BIU- Cells Formatting - Table Styles- Clipboard Font Styles A1 Adams Corporation evaluates divisional managers based on ROI. Operating B D E pams corporatiorevaiuates aiviSionai managers Daseo on KUI. Uperanng resuits Tor tne ɔmpany's Northern Division for last year are given below: 2 4 Sales 27,000,000 Variable expenses 16,200,000 6 Contribution margin 10,800,000 Fixed expenses 8,805,000 1.995.000 Net operating income 10 Average divisional operating assets 9.500.000 11
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