The following information pertains to Travis Concrete:Sales revenue$2,000,000Gross margin700,000100,000550,000IncomeInvested capitalThe company's imputed interest rate is 8%.The capital turnover is:Multiple Choice27.50.3.64.20.00.

Lets understand the basics. Capital turnover ratio indicates how well company is managing…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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
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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
For Business Plan 500,000-capital 117,705-equipment 1,577,067.40-salary *When making the product 500-ingredients expense 50-pieces produced Php 10 - product cost 70%-mark-up Php 17-selling price REQUIREMENTS Make the major assumption Projected Statement of Comprehensive Income for 3 years Projected Statement of Cash Flow for 3 years / materials for business of workers for 1 year
10. Use the information below provided by Angel Baby Angel Company: Sales 8,250,000.00 Operating costs 4,725,000.00 Operating income 3,525,000.00 Interest expense 1,750,000.00 Earnings before taxes 1,775,000.00 Taxes (40%) 621,250.00 Net income 1,153,750.00 WACC = 8%, Total invested capital 24,875,000. Calculate the EVA. (2 decimal places) Refer to Angel Baby Angel Company, what is its TIE ratio? Use 4 decimal places in your final answer.
Jackson Corp. has an operating income of $109,000, average invested assets of $601,000, and a cost of capital of 7%. What is the residual income? Multiple Choice $42,070 $109,000 $66,930 $184,597
Data on three unrelated companies are given in the following table. Comfy Inn Hamton Inn Night Inn Revenue $1,200,000 $3,185,000 Operating income $240,000 $210,000 Total assets $1,000,000 ? Profit margin ? 15% 18% Asset turnover 0.7 27% Return on investment (ROI) 20% 8.0% Target rate of return ? $150,000 Residual income a) Calculate each of the missing values. b) Comment on each company's performance in relation to the others.
Q.The ASF Company was recently formed to manufacture a new product it has the following capital structure in market value terms Long term liabilities =6 Preferred stock =3 Common stock =8 Total =17 The company marginal tax rate of 40 % with interest expense per month 1. Dividend rate on preferred is 9% with per value of 1000 flotation cost is 10% on per value , dividend rate on common stock is 15% with per value of 10 Market value of share is 1 5 with growth rate 10% . Required Compute the firm present weighted average cost of capital?
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5 Edmonds Industries is forecasting the following income statement: Sales Operating costs (excl. Depr. & Amort.) EBITDA Depreciation EBIT Interest EBT Taxes (40%) Net income $10,000,000 5,500,000 4,500,000 1,200,000 $ 3,300,000 500,000 $ 2,800,000 1,120,000 $ 1,680,000 The CEO would like to see higher sales and a forecasted net income of $2,100,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 6%. The tax rate, which is 40%, will remain the same. (Note that while the tax rate remains constant, the taxes paid will change.) What level of sales would generate $2,100,000 in net income?

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The following information pertains to Travis Concrete: Sales revenue $2,000,000 700,000 Gross margin Income 100,000 550,000 Invested capital The company's imputed interest rate is 8%. The capital turnover is: Multiple Choice O 2750. 3.64. O 20.00.