The following are selected data for the division for the consumer products of ABC Corp for 201' Sales 50,000,000 Average invested capital (assets) 20,000,000 Net income 2,000,000 Cost of capital 8% What is the return on sales for the division? 1. 4% 2. 8% 3. 10% 4. 20% O 1 O 2 3. 4

The following are selected data for the division for the consumer products of ABC Corp for 201' Sales 50,000,000 Average invested capital (assets) 20,000,000 Net income 2,000,000 Cost of capital 8% What is the return on sales for the division? 1. 4% 2. 8% 3. 10% 4. 20% O 1 O 2 3. 4

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: ales P 10,000,000 Average invested capital…

A: Solution: Return on investment is a ratio that represent the profitability of a division based on…

Q: Assume the Residential Division of Kappy Faucets had the following results last year: Net sales…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: Agustin Industries is a division of a major corporation. Data concerning the most recent year…

A: Division margin is the kind of indicator used by companies to indicate the profitability of the…

Q: A company's divislon has sales of $6,000,000, Income of $240,000, and average assets of $4,800.000.…

A: Financial ratios are used to check different aspects of a company - liquidity, solvency, etc. They…

Q: Agustin Industries is a division of a major corporation. Data concerning the most recent year…

A: Division Margin = (Net Operating Income / Sales) * 100 Note: Average operating assets are not used…

Q: a. Compute the rate of return on investment for each division. b. Which division is the most…

A: Rate of return on investment is the percentage of returns earned on the invested amount. It is…

Q: Return on investment The operating income and the amount of invested assets in each division of…

A: Return on investment means percentage of profit on the basis of amount invested in business. It can…

Q: A division of Wheeler Co. reported ROI of 20%. If the division's asset turnover was 5, the profit…

A: Return on Investment = ROI = 20% Asset turnover = at = 5

Q: The income from operations and the amount of invested assets in each division of Beck Industries are…

A: Return on investment = (Income from operation / Invested Asset)*100 To compute the return on…

Q: 10. Kragle Corporation reported the following financial data for one of its divisions for the year;…

A: Ratio analysis is a technique of analysis of the financial statements by computing various ratios.…

Q: The operating income and the amount of invested assets in each division of Conley Industries are as…

A: Return on investment: It measures the efficiency of the investment.

Q: Spartans Inc. has three operating divisions: Alpha, Beta, and Gamma. Financial information for each…

A: The objective of the question is to calculate the Sales Margin for Alpha division, the Amount of…

Q: all Division mmercial Division za Analytics Division Operating Income Inve $74,000 70,400 75,000…

A: ROI is a flexible indicator that is used in a variety of fields such as finance, business, real…

Q: Required information Use the following information for the Problems below: The following data…

A: Division A:Sales Margin = Income / Sales Revenue24% = $1,800,000 / Sales RevenueSales Revenue =…

Q: Sales P 10,000,000 Average invested capital…

A: Solution: Asset turn-over ratio of a division represents the efficiency of division's assets in…

Q: An international company has the following profitability analysis of its three divisions: Division A…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: What is the return on investment for A? 1. 18% 2.40% 3. 20% 4. 15% 0 1 O 2 O 3 O 4

A: Introduction:- Return on investments a simple ratio.. It is calculated divides the net profit (or…

Q: AB Division had the following information: Asset base in AB Division Net income in AB Division…

A: Economic Value Added is net operating profit after taxes (or NOPAT) less a capital charge, the…

Q: The following data are for the Akron Division of Consolidated Rubber, Incorporated: Sales Net…

A: Turnover reflects the no of times, the business is able to make sales of its average capital…

Q: XYZ Company has two divisions, A and B. Information for each division is as follows: A Net earnings…

A: Solution: Net sales of A = Net earnings / Margin = P40,000 / 10% = P400,000

Q: The income from operations and the amount of invested assets in each division of Beck Industries are…

A: Return on investment (ROI): This financial ratio evaluates how efficiently the assets are used in…

Q: The income from operations and the amount of invested assets in each division of Shiner Industries…

A: Formula Return on Investment = (Income from operations / Invested Assets) * 100 Division of income…

Q: Sales Net operating income Average operating assets Margin Turnover Return on investment (ROI) Alpha…

A: RATIO ANALYSISRatio analysis is a method of measuring the financial position of the organization…

Q: The following are selected data for the division for the consumer products of ABC Corp for 2020:…

A: Here in this question, we are required to calculate the residual value. Residual value is a excess…

Q: The operating income and the amount of invested assets in each division of Conley Industries are as…

A: Return on Investment: Return on investment is simply refers to the the ratio between net income and…

Q: The operating income and the amount of invested assets in each division of Conley Industries are as…

A: Solution:-a Computation of the return on investment for each division a follows:-

Q: What is EVA for Division Y? * Do not use money sign. Sample format: 11,111 NUBD Company has two…

A: EVA = NOPAT – (WACC * capital invested) Where NOPAT = Net Operating Profits After Tax WACC =…

Q: The following data relates to the ABC Corporation and its A Division.…

A: Economic value added is one of the performance of the business. It shows how much operating profits…

Q: The following are selected data for the division for the consumer products of ABC Corp for 2020:…

A: Return on Sales = Net Income/ Sales

Q: The income from operations and the amount of invested assets in each division of Shiner Industries…

Q: The sales, income from operations, and invested assets for each division of Grosbeak Company are as…

A: SOLUTION- RATIO ANALYSIS- IT IS A QUANTITATIVE METHOD OF GAINING INSIGHT IN TO COMPANYS…

Q: give me correct answer

A: Step 1: Identify the formula.Step 2: Plug in the Net Operating Income and Sales into the…

Q: and West divisions of Free Bird Company are as follows: Sales Operating Income Invested Return on…

A: ROI means return on investment. It is measure which helps to determine the percentage of profits…

Q: Aide Industries is a division of a major corporation. Data concerning the most recent year appears…

A: Definition of Profit Margin:Profit margin is a financial metric that represents the percentage of…

Q: Selected financial data for Woody Company's Furniture Division is as follows: Sales Operating income…

A: Here's the calculation:Sales: $2,100,000Operating Income: $420,000Total Assets: $1,050,000ROI =…

Q: • The following are selected data for the division for the consumer products of ABC Corp for 2019:…

A: Sales = 50,000,000 Assets = 20,000,000

Q: The following are selected data for the division for the consumer products of ABC Corp for 2019:…

A: Solution: Return on sales = net income / sales = 2000000/ 50000000 = 4%

Q: P 40,000 P100,000 15% 10% 12%

A: Solution: Sales for Division A = Net earnings of A / Margin % = 40000/ 10% = 400,000

Q: The following are selected data for the division for the consumer products of ABC Corp for 2019:…

A: Residual income for the division = Net income - average invested capital x Cost of capital

Q: Required: The following data pertain to three divisions of Nevada Aggregates, Inc. The company's…

A: Under the Ratio Analysis with the help of ratios of sales Margin, Capital turnover ratio, ROI and…

Q: The following are selected data for the division for the consumer products of ABC Corp for 2020:…

A: Assets turnover ratio = Sales / Average Invested capital where, Average Invested capital =…

Q: The Textile Division of Electrotech Corporation reported the following results for a recent year…

A: Formulas: Profit margin = Net income / Sales where, Net income = Sales - Expenses

Q: m Return on Investment The income from operations and the amount of invested assets in each division…

A: Return on investment is calculated by dividing income from operations by invested assets. Income…

Q: 4. The income from operations and the amount of invested assets in each division of Beck Industries…

A: Return on invetsment = Income from operations / Invested Assets

Q: Question: Vertical Analysis of the Income statement Company A Company B Net sales…

Q: The return on sales (ROS) for Division Y is:

A: Return of sale = Operating Profit / Revenue

Q: The following are selected data for the division for the consumer products of ABC Corp for 2020:…

A: Introduction:- The following formula used to calculate as follows:- Residual income = Net income -…

Q: The following data relates to the XYZ Corporation and its X Division.…

A: Economic Value Added (EVA) The Calculation of Economic Value Added which can be formulized by Net…

Question

The following are selected data for the division for the consumer products of ABC Corp for 2019:
Sales
50,000,000
Average invested capital (assets)
20,000,000
Net income
2,000,000
Cost of capital
8%
What is the return on sales for the division?
1.4%
2. 8%
3.10%
4. 20%
О1
O 2
O 4
3.

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

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The following are selected data for the division for the consumer products of ABC Corp for 2019: Sales 50,000,000 Average invested capital (assets) 20,000,000 Net income 2,000,000 Cost of capital 8% What is the asset turn-over ratio for the division? 0.25 2.5 8 10% Group of answer choices 1 2 3 4
Meman
XYZ Company has two divisions, A and B. Information for each division is as follows: A B Net earnings for division P 40,000 P 260,000 Asset base for division P100,000 P1,200,000 Target rate of return 15% 18% Margin 10% 20% Weighted average cost of capital 12% 12% What is the operating asset turnover for A? 0.15 0.10 4.00 2.50 Group of answer choices 1 2 3 4
• The following are selected data for the division for the consumer products of ABC Corp for 2019: Sales 50,000,000 Average invested capital (assets) 20,000,000 Net income 2,000,000 Cost of capital 8% What is the return on investment for the division? 1. 2% 2. 4% 3. 8% 4. 10% О1 O 2 3 O 4
Selected financial data for the Photocopies Division of Elizabeth's Business Machines is as follows: Sales $8,200,000 Operating income $2,788,000 Total assets $3,280,000 Current liabilities $400,000 Required rate of return 14% Weighted average cost of capital 3% What is the Photocopier Division's residual income? Question 16 options: $459,200 $2,328,800 $3,247,200 $2,689,600
The following are selected data for the division for the consumer products of ABC Corp for 2019: Sales 50,000,000 Average invested capital (assets) 20,000,000 Net income 2,000,000 Cost of capital 8% What is the return on investment for the division? 2% 4% 8% 10% Group of answer choices 1 2 3 4
Assume division 1 of the XYZ Company had the following results last year (in thousands) Management's required rate of return is 81% and the weighted average cost of capital is 6% Its effective tax rate is 30% Sales$ 9,000,000 Operating expenses $ 1,200,000 Operating income $1,500,000 Total revenue$ 2,000,000 Total assets $ 12,000,000 Current liabilities$ 5,000,000 What is the division's residual income? $100,000 $200,000 $500, 000 $ 540,000 Assume division 1 of the XYZ Company had the following results last year (in thousands). Management's required rate of return is 8% and the weighted average cost of capital is 6% effective tax rate is 30% . \table [[Sales, $9, 000, 000
Return on investment The operating income and the amount of invested assets in each division of Conley Industries are as follows: Operating Income Invested Assets Retail Division $72,600 $330,000 Commercial Division 117,600 490,000 Internet Division 224,100 830,000 a. Compute the return on investment for each division. (Round to the nearest whole percentage.) Division Percent Retail Division % Commercial Division % Internet Division b. Which division is the most profitable per dollar invested?
Spartans Inc. has three operating divisions: Alpha, Beta, and Gamma. Financial information for each division in displayed below. Alpha Beta Gamma Sales $525,000 $625,000 $475,000 Oper. Exp. $465,000 ? $437,000 Oper. Income $60,000 $75,000 ? Inv. Assets ? ? $380,000 ROI 0.2000 0.1500 ? Sales Margin ? ? 0.0800 Cap. Turn ? 1.25 ? Use the DuPont Equation to calculate the following values: Return on Investment = Net Operating Income Avg. Invested Assets…
Return on investment The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Income from Operations Invested Assets Retail Division $156,200 $710,000 Commercial Division 56,000 280,000 Internet Division 194,400 720,000 a. Compute the return on investment for each division. (Round to the nearest whole number.) Division Percent Retail Division fill in the blank 1 % Commercial Division fill in the blank 2 % Internet Division fill in the blank 3 % b. Which division is the most profitable per dollar invested?
The ABC Corporation reported the following information for its Toledo Division: Revenues Operating costs Beginning operating assets Ending operating assets P100,000,000 60,000,000 50,000,000 60,000,000 What is the Toledo Division's return on investment? 67% 73% 80% 109%