[The following information applies to the questions displayed below.]The following information is provided for each Investment Center.Average Assets$ 26,900,00016,700,00019,000, 000Investment CenterIncome$ 5,350,0002,338,000900,000CamerasPhonesComputersQS 9-13 (Algo) Computing residual income LO A1Assume a target income of 14% of average assets.Compute residual income for each center. (Enter losses with a minus sign.)Target IncomeCamerasPhonesComputersTargeted returnTarget income%%Residual IncomeCamerasPhonesComputersResidual income (loss)

Residual income is revenue received after the job that generates income has been completed.…

[The following information applies to the questions displayed below.] The following information is provided for each Investment Center. Investment Center Income $ 5,350,000 2,338,000 900, 000 Average Assets S 26,980,000 16,700,000 19,000,000 Cameras Phones Computers $ 9-13 (Algo) Computing residual income LO A1 sume a target income of 14% of average assets. mpute residual income for each center. (Enter losses with a minus sign.) rget Income Cameras Phones Computers Targeted return Target income esidual Income % Cameras Phones Computers Residual income (loss)

[The following information applies to the questions displayed below.] The following information is provided for each Investment Center. Investment Center Income $ 5,350,000 2,338,000 900, 000 Average Assets S 26,980,000 16,700,000 19,000,000 Cameras Phones Computers $ 9-13 (Algo) Computing residual income LO A1 sume a target income of 14% of average assets. mpute residual income for each center. (Enter losses with a minus sign.) rget Income Cameras Phones Computers Targeted return Target income esidual Income % Cameras Phones Computers Residual income (loss)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

PA10-1 (Algo) Calculating Return on Investment, Residual Income, Determining Effect of Changes Sales, Expenses, Invested Assets, Hurdle Rate on Each [LO 10-4, 10-5] Coolbrook Company has the following information available for the past year: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets The company's hurdle rate is 6.51 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for each division for each independent situation that follows: Complete this question by entering your answers in the tabs below. a. Operating income increases by 9 percent. b. Operating income decreases by 11 percent. c. The company invests $253,000 in each division, an amount that generates $110,000 additional income per division. d. Coolbrook changes its hurdle rate to 4.51 percent. Req 1 Req 2A Req 2B Req 2C River Division River Division $ 1,212,000 885,000 $…
A. Compute the divisional ROI for the Campus Division. B. Compute the divisional RI for the Campus Division.
p4-4
The following information is provided for each division. Net Income $6,100,000 2,758,000 1,000,000 Investment Center Cameras and camcorders Phones and communications Computers and accessories Assume a target income of 14% of average invested assets. Required: Compute residual income for each division. (Enter losses with a minus sign.) Target Income Targeted return Target income Residual Income Residual income (loss) Cameras and Camcorders Cameras and Camcorders Average Assets $ 25,700,000 19,700,000 10,400,000 % Phones and Communications Phones and Communications % Computers and Accessories Computers and Accessories %
10
please answer do not image format
kai.8
A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Loss amounts should be indicated by a minus sign. Round your percentage answers to nearest whole percent and other amounts to whole dollars.) Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual income $ $ A 470,000 160,000 15 % 16 % $ $ $ Company B 680,000 43,000 19 % 57,000 % C $ 560,000 $ 145,000 $ % 10 % 5,000
Required information [The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. Investment Center Electronics Income $ 3,114,000 2,261,000 Average Assets $ 17,300,000 13,300,000 Sporting goods Sales $ 41,520,000 18,088,000 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated the most residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? The target return is 11%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment for each center. Using return on investment, which center is most efficient…
Dd3. For the most recent year, Petunia Company had the following data for its Clarkston Division, an investment center: total contribution margin—$671,110 budget, $695,741 actual; controllable fixed costs—$298,900 budget, $295,702 actual. Average operating assets for the year were $1,959,045. Determine the actual return on investment.
Assume that Division Blue has achieved a yearly operating income of $162,000 using $973,000 of invested assets. If management has set a minimum acceptable return on investment of 7%, the residual income is a. $75,112 b.$112,668 c.$93,890 d.$162,000
None