The following extracts of the financial statements of Wiggo have been obtained: $980,000 ($530,000) ($210,000) Revenue Cost of sales Operating expenses Equity $600,000 Loan $300,000 Deferred tax $44,000 Payables $46,000 What is the return on capital employed of Wiggo? A 24.2% В 25.4% C 26.7% D 50%

The following extracts of the financial statements of Wiggo have been obtained: $980,000 ($530,000) ($210,000) Revenue Cost of sales Operating expenses Equity $600,000 Loan $300,000 Deferred tax $44,000 Payables $46,000 What is the return on capital employed of Wiggo? A 24.2% В 25.4% C 26.7% D 50%

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: INCOME STATEMENT XYZ Industries is forecasting the following income statement: Sales P8,000,000…

A: Net income = 2,500,000 Tax rate = 40% Operating cost = 55% of sales Depreciation and amortization…

Q: If Net sales $200,000, Cost of goods sold 90,000, Operating expenses 80,000, Net income10,000, Total…

A: Operating Income = Net Sales - Cost of goods sold - Operating expenses = $200,000 - $90,000 -…

Q: 15/24 crual Basis Balance Sheet As of December 31, 2024 Dec 31, 24 % of Column 24000 - PayrollI…

A: The question is related to Net Profit Margin. The Net Profit Margin is calculated as under Net…

Q: Prepare a schedule computing the net cash flow from operating activities that would be shown on a…

A: Cash flow from Operating Activities:- It indicates the amount of money of a company brings in from…

Q: Florida Incorporated has sales revenue of $1,875,000 resulting in net operating income of $187,500.…

A: Ratio analysis s helps to analyze the financial statements of the company. Management can make…

Q: X Co. has the following information: Sale $ 1,200,000 Cost of sales $800,000 Operating expenses…

A: Return on capital employed can be defined as the earnings from the capital contributed in 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: A4

Q: Calculate operating margin

A: Operating income means sales revenue minus all operating expenses.That means the gross profit minus…

Q: 1. FIND WACC 2. CALCULATE THE EBIT AFTER TAX 3. CALCULATE COST OF EQUITY

A: Revenue is the amount of revenue earned through the sale of goods or services related to the…

Q: The profit margin for Mason Corporation is

A: Profit Margin: It is a measure of profitability for the business. Higher the ratio, the better the…

Q: Blaser Corporation had $1,092,000 in invested assets, sales of $1,214,000, income from operations…

A: Return on investment = Income from operation / Average investment where, Average investment =…

Q: The following data pertain to Dakota Division's most recent year of operations. Income $ 17,500,000…

A: Residual income=operating income-(Average invested capital*Minimum desired return)

Q: statements for Q2 (April 1- June30) based on the follow assumptions:

A: Statement of Profit and Loss for Q2 (Amount in $ Statement of Profit & Loss a/c…

Q: Consider the following income statement: Sales $ 912,400 Costs 593,600 Depreciation 135,000 Taxes…

A: The income statement is one of the important financial statements of the business. The net income is…

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: Mason Corporation had $1,077,000 in invested assets, sales of $1,209,000, income from operations…

A: The residual income is the income the company is earning over and above what it should earn.…

Q: F Company has revenues of P1,500,000 resulting in an operating income of P105,000. Average invested…

A: Return on investment (ROI) :— It is a financial ratio to measure the profitability from investment.…

Q: The following data pertain to Waramutse's most recent year of operations. Income $ 12,500,000…

A: Waramutse's residual income for the year is $6,890,000.Explanation:To compute Waramutse's residual…

Q: Use the information below provided by Angel Baby Angel Company: Sales 8,250,000.00 Operating…

A: Solution:- 1)Calculation of Times interest earned ratio as follows under:- Times interest earned…

Q: Sales 8.250.000.00 Operating costs 4,725.000.00 Operating income 3,525,000.00 Interest expense…

A: Formula: Economic value added (EVA) = Net operating profit after tax - Total invested capital x WACC…

Q: Berry Corporation reports the following information. Year 7 Year 6 Cash $12,768 $11,592…

A: Residual operating income of the company is the Net operating profit after tax of current year minus…

Q: Use this information for Mason Corporation to answer the question that follow. Mason Corporation had…

A: The money that left over in the business after paying off all expenses and costs is called as…

Q: The following information is available on Company A: Sales Operating Income $900,000 $36,000…

A: Fixed Assets Turnover is one of efficiency ratio being used in business. This shows how many times…

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: Assume that a company has the following data: EBIT=1,200 EBITDA Margin=9.4% Tax rate 39% Net…

A: Return on invested capital(ROIC)- This is the amount of return a company makes above the average…

Q: b. As the table above shows, the plant is carried on Androscoggin's books at $48.68 million.…

A: A financial indicator is Economic Value Added. EVA indicates whether a business is generating or…

Q: Hi expart give correct answer

A: Conclusion:The calculated operating cash flow is $800.So, the correct answer is: D. $800.

Q: Give true answer

A: Step 1:Given:Total Sales = $1,700Total cost = $745Depreciation = $155 Solve:Profit before tax =…

Q: REQUIRED Calculate the working capital cycle of Provalis Limited. INFORMATION The following…

A: Cash conversion cycle is also known as working capital cycle, which can be calculated as: Inventory…

Q: When the units produced is greater than the units sold, A. some variable manufacturing overhead…

A: Units produced means the number of units produced or made by the entity during a period and units…

Q: Problem

A: Step 1: introduction to the Return on Assets:The return on assets shows the amount of net income as…

Q: Simple ROI and Residual Income Calculations: Consider the following data: Division Y P2,000,000…

A: Since you have asked two different questions under a single question. Kindly resubmit the question…

Q: Extracts from the draft Statements of Comprehensive Income for the year ended 31 December 20x1,…

A: EPS (Earnings per share) is calculated by dividing the net income by total weighted average of…

Q: The following data pertain to Dakota Division's most recent year of operations. Income $ 16,000,000…

A: Income = $16,000,000 Average invested capital = $185,000,000 Return on invested capital = 14%

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: The following data pertain to Dakota Division's most recent year of operations.

A: Sales Margin: This ratio tells us how much profit is generated over a company's sales. It is…

Q: Use the information below provided by Angel Baby Angel Company Sales 8,250,000.00 Operating costs…

A: Formula: Economic value added (EVA) = Net operating profit after tax - Total invested capital x WACC…

Q: The most recent financial statements for Cardinal, Incorporated, are shown here: Income Statement…

A: External financing refers to the funds that are generated from outside the business in the form of…

Q: The following data relate to the direct materials cost for the production of 2,500 automobile tires:…

A: Direct Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…

Q: Miami Corp. has an operating income of $105,000, average invested assets of $601,000, and a cost of…

A: Residual Income refers to money earned after the revenue-generating work is completed. Residual…

Question

The following extracts of the financial statements of Wiggo have been obtained:
Revenue
$980,000
($530,000)
($210,000)
Cost of sales
Operating expenses
Equity
$600,000
Loan
$300,000
Deferred tax
$44,000
Payables
$46,000
What is the return on capital employed of Wiggo?
A
24.2%
В
25.4%
C
26.7%
D
50%

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

Financial Reporting in Hyperinflationary Economies

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

Given the following information for the Green Company: Net sales (all on account) $5,200,000Interest expense 240,000Income tax expense 280,000Net income 420,000Income tax rate 40%Total assets: January 1, 2010 $1,800,000 December 31, 2010 2,400,000Stockholders' equity: January 1, 2010 1,500,000 December 31, 2010 1,600,000Current assets, December 31, 2010 700,000Quick assets, December 31, 2010 400,000Current liabilities, December 31, 2010 300,000Net accounts receivable: January 1, 2010 200,000 December 31, 2010 180,000 Green's return on total assets during 2010 was: Question 15 options: a) 20.0% b) 26.9%…
Question on ROI DATA $ Revenue 97,000 Unearned Revenue 4000 BI 5000 El Purchases Core Current Assets Land for speculation PPE Operating assets for previous year 2500 38000 58,000 75000 260,000 185,000 Operating expenses Accrued expense ТАX RATE 24000 8000 25% DEBT USED 35% INTEREST EXPENSES 14000 DEBT 86000 REAL RATE INFLATION 4% 6% RISK PREMIUM 3.5% RISK FREE RATE 10% Training cost R & D expenses $34,000 $50,000 REQUIRED 1. FIND WACC 2. CALCULATE THE EBIT AFTER TAX 3. CALCULATE COST OF EQUITY 4. CALCULATE RESIDUAL INCOME 5. CALCULATE EVA [ economic value added]
14. Briggs Company has operating income of $33,516, invested assets of $133,000, and sales of $478,800. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin ____ % b. Investment turnover ____ c. Return on investment ____ %
Suppose a company has research costs of $115,000 and development costs of $285,000 for the year. Under U.S. GAAP, what amount would be reported as an expense in the current year's Income statement? Multiple Choice $400,000 $115,000 $285,000 $200,000
The following data pertain to Turk Company's operations last year: Sales Net operating income Contribution margin Average operating assets Stockholders' equity Plant, property, & equipment Turk's return on investment for the year was: Multiple Choice O O 20% 4% 36% 15% $ 900,000 $ 36,000 $ 150,000 $ 180,000 $ 100,000 $ 120,000
The following information pertains to Travis Concrete: Sales revenue $2,000,000 Gross margin 700,000 100,000 550,000 Income Invested capital The company's imputed interest rate is 8%. The capital turnover is: Multiple Choice 27.50. 3.64. 20.00.
IF XZX has the following data:Profit margin 2%Return on Asset 4%Sales revenues $500,000What is the company Total assets ? O a. $500,000 O b. $300,000 O c. $250,000 O d. $100,000
Peace Inc. has the following information: Sales P 480,000 Operating expenses 300,000 Net loss (60,000) How much is Peace Inc.'s gross profit if its gross profit is 50% based on sales?A. 260,000B. 180,000C. 240,000D. 280,000
The most recent financial statements for Mixton, Incorporated, are shown here: INCOME STATEMENT Sales Costs Taxable income Taxes (22%) Net income $ 52,000 Assets 42,400 $ 9,600 2,112 $ 7,488 Total BALANCE SHEET Debt Equity Total Answer is complete but not entirely correct. External financing needed s 11,990 X $ 115,700 $ 115,700 $ 34,500 81,200 $ 115,700 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,900 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $61,360. What is the external financing needed? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Data for the wholesale products division of ABC Co. are as follows: Earnings before interest and taxes P30,000,000; Depreciation expense P10,000,000; Interest Expense P1,000,000; Change in net working capital P5,000,000; Capital expenditures P4,000,000; Invested capital P50,000,000; Weighted average cost of capital 10%; Tax rate 30%. Considering the impact of income tax, the economic value added by the division must be nearest to P15,300,000 P16,000,000 P16,300,000 P25,000,000 P30,000,000
A4
Estimate a firm's economic value added (EVA) based on the following information: NOPAT = $400,000; amount of financial capital used = $1,600,000; and WACC = 19%. $26,000 $36,000 $96,000 54,000