Please need answer the financial accounting question The following information is provided for each InvestmentCenter.Investment Center IncomeAverage AssetsCameras$6,100,000 $27,200,000Phones2,639,000 20,300,000Computers1,200,000 11,400,000Assume a target income of 13% of average assets.Compute residual income for each center.

Step 1: Introduction to residual incomeResidual income, commonly referred to as economic profit or…

Answered: The following information is provided…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.11E

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Compute return on investment for each investment center. Which center performed the best on return on investment?
Fill in the blanks in the schedule below for two separate investment centers A and B. Note: Round your final answers to 1 decimal place. Investment Center Sales Income Average assets Profit margin Investment turnover Return on investment A + $ 240,000 $ 1,200,000 8.0% B $ 10,400,000 2.0 12.0%
The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Income $5,200,000 2,436,000 1,000,000 Average Assets $ 29,000,000 20,300,000 19,800,000 QS 22-12 (Algo) Computing return on investment LO A1 Compute return on investment for each investment center. Which center performed the best based on return on investment? Complete this question by entering your answers in the tabs below. Return on Performance Investment Based on ROI Compute return on investment for each investment center. Note: Round your final answer to 1 decimal place. Investment Center Income Average Assets Return on Investment Cameras $ 5,200,000 $ 29,000,000 % Phones Computers 2,436,000 1,000,000 20,300,000 % 19,800,000 %
Required information. [The following information applies to the questions displayed below) The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Income $ 4,500,000 1,500,000 800,000 Average Assets $ 20,000,000 12,500,000 10,000,000 Compute return on investment for each investment center. Which center performed the best based on return on investment? Complete this question by entering your answers in the tabs below. Return on Performance Investment Based on ROI Compute return on investment for each investment center. Note: Round your final answer to 1 decimal place. Investment Center Cameras Phones Computers Income $ 4,500,000 $ 1,500,000 800.000 Average Assets 20,000,000 12,500,000 Return on Investment % % 10,000,000 %
Golden Goodness (GG) has an investment center that had the following data: Operating Income $28,000 Sales $350,000 Invested assets $175,000 PMB has set a minimum acceptable rate of return at 14%. Using the information, answer the following questions. You must include what type of number it is (%, $, etc.) Part A: What is the residual income? Part B: Show calcualtions on how you got answer
The operating income and the amount of invested assets in each division of Conley Industries are as follows: a. Compute the return on investment for each division. b. Which division is the most profitable per dollar invested? Based on the data in Exercise 10 assume that management has established a 15% minimum acceptable return for invested assets. a. Determine the residual income for each division. b. Which division has the most residual income?
Use the following information for the Quick Study below. (Algo) [The following information applies to the questions displayed below.] The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Income $ 6,400,000 2,145,000 900,000 QS 22-12 (Algo) Computing return on investment LO A1 Compute return on investment for each investment center. Which center performed the best based on return on investment? Investment Center Average Assets $ 29,600,000 16,500,000 15,200,000 Complete this question by entering your answers in the tabs below. Cameras Phones Computers Performance Return on Investment Based on ROI Compute return on investment for each investment center. (Round your final answer to 1 decimal place.) Average Assets $ 29,600,000 16,500,000 15,200,000 Answer is complete but not entirely correct. Income $ 6,400,000 2,145,000 900,000 Return on Investment 2.2 X % 0.2 X % 5.9 %
Average rate of return method, net present value method, and analysis for a service company The capital investment committee of Iguana Inc. is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows: Year Robotic AssemblerOperating Income Robotic AssemblerNet Cash Flow WarehouseOperating Income WarehouseNet Cash Flow 1 $47,500 $152,000 $100,000 $243,000 2 47,500 152,000 76,000 205,000 3 47,500 152,000 38,000 144,000 4 47,500 152,000 17,000 99,000 5 47,500 152,000 6,500 69,000 Total $237,500 $760,000 $237,500 $760,000 Each project requires an investment of $500,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 15% for purposes of the net present value analysis. Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747…
Company A has provided figures for two investment projects, only one of which may be chosen. These are the calculations based on the figures: Payback Period The Accounting Rate of Return / Return on Capital Employed Net Present Value Project A 2 years 4 months 27.08% £63,705 Project B 2 years 7 months 39.47% £74.971 Analyse and provide recommendations as to what project needs to be chosen based on the calculations above.
Fill in the blanks in the schedule below for two separate investment centers A and B. Investment Center: Sales Income Average assets Profit margin Investment turnover Return on investment Investment Center A B Investment Turnover: Investment Center A B Return on investment: Investment Center A Use the information in the table above to compute each department's contribution to overhead (both in dollars and as a percent): (Round your final answers to 2 decimal places.) Profit Margin: B Numerator: Numerator: A Numerator: $? $ 584,600 $1,580,000 10% 7 28 B $ 12,200,000 Denominator: Denominator: $? $7 Denominator: 7% 1.3. 13% Profit Margin =Profit margin 10.00 % = Investment Turnover = Investment turnover 1.30 Return on investment = Return on investment. % 13.00 %
INVESTMENT CENTER: The AAA Division has permanent current assets of P50,000 and operating non-current assets of 350,000. It provides annual operating income after tax of P100,000. Its cost of capital is 15% but the minimum required rate of return by the entity is 16%. How much is its current return on investment? How much is its economic value added? How much is its residual income? Assume that the Senna Division is presented by the head office to manage a P60,000 investment option yielding a 20% return on its investment. Should the Division agree to manage this investment opportunity? Yes, because the ROI will increase. Yes, because the RI and EVA will increase. No, because the ROI will decrease. No, because the RI and EVA will decrease.
Use the following information for Exercises 11-31 and 11-32: Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last years results: Washingtons actual cost of capital was 12%. Exercise 11-32 Residual Income Refer to the information for Washington Company above. In addition, Washington Companys top management has set a minimum acceptable rate of return equal to 8%. Required: 1. Calculate the residual income for the Adams Division. 2. Calculate the residual income for the Jefferson Division.

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The following information is provided for each Investment Center. Investment Center Income Average Assets Cameras $6,100,000 $27,200,000 Phones 2,639,000 20,300,000 Computers 1,200,000 11,400,000 Assume a target income of 13% of average assets. Compute residual income for each center.