The following are available for divison X and Y Profit before interest and tax X 185 000 Y172 000 Capital employed X 1 540 000 Y 1 650 000 The cost of capital is 10% comment on the performance of the departments based on a. Return on capital employed b.residual income

The following are available for divison X and Y Profit before interest and tax X 185 000 Y172 000 Capital employed X 1 540 000 Y 1 650 000 The cost of capital is 10% comment on the performance of the departments based on a. Return on capital employed b.residual income

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.11E

See similar textbooks

Related questions

Q: Determining missing items in return and residual income computations Data are presented in the…

A: Formula: Return on investment = Operating income / Invested assets Minimum return on investment =…

Q: Fill in the blanks for each independent situation. A B $350,000 $ Sales Variable expense Fixed…

A: Cost volume profit analysis is the one which is prepared by the entity in order to determine the…

Q: Instructions 1. Compute the margin and tumover ratios for each year 2. Compute the ROI for each year…

A: Operating Asset or Fixed Asset Turnover Ratio represent the sales with respect to Average Operating…

Q: Consider the following income statement: $ 529,192 344,288 78,300 23% Sales Costs Depreciation Taxes…

A: Sales = $ 529192 Costs = $ 344288 Depreciation = $ 78300

Q: Consider the following income statement: Sales $909,407 Costs…

A: Operating cash flow (OCF) is a measurement of how much money a company generates through regular…

Q: a. D supplied following data are for the latest year of operations: Sales ₱24,480,000; Operating…

A: Return on investment means profit earned as per total investments in percentage. It is calculated by…

Q: The following selected data for BC Company for 2022: Sales P 2,000,000 Variable Costs 1,200,000…

A: Formulas: Residual income = Net Operating income - Average Invested Capital x Required rate of…

Q: Statement of Comprehensive Income for the year ended 31 March 2021 Revenue (all credit) Gross profit…

A: Answer: Gross margin = Gross profit/ revenue Current ratio= Current assets/ Current liabilities…

Q: The following are available for divison X and Y Profit before interest and tax X 185 000 Y172…

A: The objective of the question is to evaluate the performance of two divisions, X and Y, based on two…

Q: Selected data from an investment center of IROL Inc. follow:Sales $8,000,000Net book value of…

Q: Determining missing items in return and residual income computations Data for Uberto Company are…

Q: When the account property, plant and equipment are presented in a statement as 20% of the total…

A: Balance sheet is the statement of financial position of the business, which shows all assets,…

Q: 8. The following information is available for the Hancock Company. Sales Cost of Sales Operating…

A: Workings:- Particulars Amount Amount Sales $ 7,56,000 Less: COGS $ 3,15,000…

Q: Metlock Company began operations on January 1, 2023, and uses the average-cost method of pricing…

A: Journal Entry is the primary step in recording the transactions in the books of accounts.Inventory…

Q: INCOME STATEMENT Hermann Industries is forecasting the following income statement: Sales $8,000,000…

A: Dear student, in this question we have to prepare a new income statement as per the new given terms.

Q: Calculate the residual income with the following data: Controllable margin $202,596…

A: Residual income: It is calculate to asses the performance of any capital investment. Residual…

Q: QS 9-14 (Algo) Components of performance measures LO A1, A2 Fill in the blanks in the schedule below…

A: profit margin ratio is a ratio that is calculated by taking net income on numerator and dividing it…

Q: Calculate the sales margin, asset turnover, and ROA for the companies below: Average Capital Assets…

A: RETURN ON INVESTMENTReturn on investment is one of the profitability ratios which shows how much…

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: b.) From the given figures relating to the following profitability ratios for the two years: Wick…

A: The ration analysis helps to analyze the financial statements of the business. The gross profit and…

Q: Determining missing items in return and residual income computations Data for Uberto Company are…

A: Residual income for the division = income from operations - (Assets x minimum acceptable return on…

Q: Alpha Company reports $125,636,256 as revenue from ordinary activities and the cost of ordinary…

A: Gross margin is very important in the business and it is indicator of the profitability and cash…

Q: What are the reportable segments?

A: Concept: First we Calculate % of Revenue, % Profit and % of Assets on respective total basis then…

Q: The following are the details from the income statements of division S and division C for the year…

A: Let Sales = S Operating cost = O Tax rate = T WACC = r Capital invested = C

Q: 20. From the following data calculate: a) P/V Ratio b) Variable cost and c) Profit Rs 80,000 15,000…

A: Hi student Since there are multiple questions, we will answer only first question. Variable costs…

Q: The following are the details from the income statements of division S and division C for the year…

A: Formula for EVA EVA = NOPAT - WACC x Capital Invested. First we need to calculate Net Operating…

Q: Simple ROI and Residual Income Calculations. Consider the following data: 1.) DIVISION…

A: Simple ROI is calculated by dividing the income by invested capital, and Residual income is…

Q: Data for Uberto Company are presented in the following table of returns on investment and residual…

A: (a) Rate of Return on Investments = Income from Operations / Invested Assets = $231,400/$890,000 =…

Q: Data for Uberto Company are presented in the following table of rates of return on investment and…

A: (a) Rate of Return on Investments = Income from Operations / Invested Assets = $187,200/$780,000 =…

Q: Determining missing items in return and residual income computations Data for Uberto Company are…

A: a: Rate of Return on Investments = Income from OperationsInvested Assets = $185,000$925,000= 20%

Q: Determining missing items in return and residual income computations Data for Uberto Company are…

A: Solution:- Calculation of missing items in return and residual income computations as follows:-…

Q: Division Y Profit before interest and tax P185 000 P172, 000 Capital employed P1, 540, 000 P1, 650,…

A: Answer : a. return on capital employed = Earning before interest and tax / Capital employed…

Q: You have been provided with the following information for City Projects Ltd: Statement of…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: If given the following information: Current Assets - 2073 Current Liabilities - 1634 Cash - 1182…

A: Current ratio is defined as the liquidity ratio, which used to measure an ability of the corporation…

Question

The following are available for divison X and Y

Profit before interest and tax X 185 000 Y172 000

Capital employed X 1 540 000 Y 1 650 000

The cost of capital is 10%

comment on the performance of the departments based on

a. Return on capital employed

b.residual income

AI-Generated Solution

AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.

Unlock instant AI solutions

Tap the button
to generate a solution

Click the button to generate
a solution

SEE SOLUTION

Similar questions

The following results are available for Division X and Y:Division X Division YProfit before interest and tax P185 000 P172, 000Capital employed P1, 540, 000 P1, 650, 000The cost of capital is 10%.Calculate and comment on the performance of the departments based on:a. Return on capital employed (4 marks)b. Residual incom
please answer and show computation
From the information given below, find out the return on capital employed. Profit after interest and tax OMR 60,000 Profit after interest before tax OMR 80,000 Profit before interest and tax OMR 90,000 Capital employed OMR 200,000
Ask for income allocation and statement of parners capital and 4 journals entries
QUESTION 4 The following results are available for Division X and Y:Division X Division YProfit before interest and tax P185 000 P172, 000Capital employed P1, 540, 000 P1, 650, 000 The cost of capital is 10%.Calculate and comment on the performance of the departments based on:a. Return on capital employed b. Residual income
How much is controllable margin?
Please help me with show all calculation thanku
If given the following information: Current Assets - 2073Current Liabilities - 1634Cash - 1182Inventory - 316Net working capital - 934Total Assets - 3873Average Daily Operating Costs - 344 Find the Current Ratio.
Determining missing items in return and residual income computations Data are presented in the following table of returns on investment and residual incomes: Invested Assets Operating Income Return on Investment Minimum Return on Investment Minimum Acceptable Operating Income Residual Income $870,000 $200,100 (a) 13% (b) (c) $520,000 (d) (e) (f) $57,200 $26,000 $340,000 (g) 14% (h) $37,400 (i) $260,000 $49,400 (j) 11% (k) (l)
Prepare the Pro-Forma Statement of Financial Position for the year ending 31 December 2023 INFORMATIONSibiya ProjectsStatement of Comprehensive Income for the year ended 31 December 2022 RSales 10 000 000Cost of sales (5 750 000)Gross profit 4 250 000Variable, selling and administrative costs (1 500 000)Fixed selling and administrative costs (500 000)Net profit 2 250 000 Statement of Financial Position for the year ended 31 December 2022ASSETS RNon-current assets 800 000Property, plant and equipment 800 000 Current assets 3 400 000Inventories 1 600 000Accounts receivable 600 000Cash 1 200 000TOTAL ASSETS 4 200 000 EQUITY AND LIABILITIESEquity 3 760 000 Current liabilities 440 000Accounts payable 440 000TOTAL ASSETS AND LIABILITIES 4 200 000 Additional informationA. The sales budget for 2023 is as follows:First Quarter Second Quarter Third Quarter Fourth QuarterR2 625 000 R2 750 000 R2 875 000 R2 750 000 B. 90% of sales is collected in the quarter of the sale and 10% in the quarter…
20. The following is a summarized income statement of CoolKid Co.'s profit center No. 44 for March: Contribution margin Period expenses: P70,000 Manager's salary Facility depreciation Corporate expense allocation Profit center income P20,000 8,000 (33,000) P37.000 5,000 Which of the following amounts is most likely subject to the control of the profit center's manager? А. P70.000 P50,000 C. P37,000 D. P33,000 B,
The following data are available for Segment X of XYZ Company: Net income of the segment $50,000 Contribution to indirect expenses 40,000 Controllable income by manager 48,000 Assets directly used by the manager 360,000 Assets under the control of the segment 240,000 manager Determine the return on investment for evaluating 1. the income performance of the manager of Segment X and 2. the rate of income contribution of the segment. Answer: