What was the Bread Division's minimum required rate of return last year?A. 12%B. 4%C. 15%D. 20% The following information relates to last year's operations at the Bread Division ofRison Bakery, Inc.:Residual incomeP12,000Р60,000Net operating incomeSalesР300,000Average operating assetsP400,000

The residual income is calculated as difference between operating income and desired income.

The following information relates to last year's operations at the Bread Division Rison Bakery, Inc.: Residual income P12,000 Net operating income P60,000 Sales P300,000 Average operating assets P400,000

The following information relates to last year's operations at the Bread Division Rison Bakery, Inc.: Residual income P12,000 Net operating income P60,000 Sales P300,000 Average operating assets P400,000

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: As the investment manager, you are faced with the problem of choosing between two investment…

A: Here,

Q: An investment of $100,000 resulted in income of $25,000 per year for 10 years. The rate of…

A: Investment = $ 100,000 Annual income = $ 25,000 Period = 10 Years

Q: Question 7 A company's annual cost in year one is $26,000, with costs increasing by $2000 per year…

A: We know that Present value can be calculated by discounting the cash flow at appropriated discount…

Q: Exercise 9-9 (Algo) Return on investment analysis LO A1 A growing chain is trying to decide which…

A: Return on investment is calculated by dividing net operating income by average operating assets. The…

Q: 3.1 REQUIRED Calculate the following for both projects from the information provided below: 3.1.1…

A: Payback period The time that a project undertakes to recover the funds invested in a project is…

Q: If economic order quantity is 1,500 units and consumption in units for one year are 15,000 units,…

A: Formula: Number of orders in a year = consumption in units for one year / EOQ

Q: The treasurer of Tropical Fruits, Inc., has projected the cash flows of Projects A, B, and C as…

A: In the given case, the cash flows of each project is given along with the discount rate is 12% per…

Q: Cabell Products is a division of a major corporation. Last year the division had total sales of…

A: Residual income = Operating income - Minimum required return where, Minimum required return =…

Q: A Pump manufacturer expects its materials cost to be $1,000,000 this quarter and to increase by…

A: Present Worth(PW) is the accumulation of discounted values for all amounts in a series. It is…

Q: Question 6 Calculate the rate of return per year (IRR) for the following cash flow:(XO=s-56,000,…

A: Internal rate of return is the discount rate where the present value of inflows equals present value…

Q: 3. An investment of 151,155.00 yields P37,238.49 at the end of the 3rd year, P44,774.27 at the end…

A: Here, Investment Amount is 151,155.00 Yield in third year is P37,238.49 Yield in sixth year is…

Q: A company's sales in 2010 were P300,000 and in 2011 were P351,000. Using 2010 as the base year, the…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: An investment of 3000$ in good for 5 years. The annual benefits are either 300S or 1000$ in a given…

A: we need to use RATE function in excel to calculate rate of return. Formula is =RATE(NPER,PMT,-PV)

Q: Question 8 Find the value of P for which the inflows will equal the outflows. Find the effective…

A: > Calculation of value of P:>Present value of inflows/outflows=cash flow*Present value of…

Q: If you invested $12,000 for ten years at 7.25% p.a. compounded fortnightly, how much in total would…

A: FV = PV* (1 + r / n)nt Where, PV = Present value FV = Future value r = Rate of interest (percentage…

Q: 3.4 Benefit Cost Ratio of Project B (answer expressed to three decimal places). 3.5 Internal Rate of…

A: Internal Rate of Return (IRR) is that discounting rate at which Net Present Value of the project is…

Q: Question 2 A company is considering factoring as a way of managing its trade receivables. It…

A: Calculation of interest charge payable for next year : Identify the amount of trade receivables…

Q: Which alternative in the table below should be selected when the MARR = 4% per year? The life of…

A: IRR is a rate at which NPV of the project is equal to the zero or it can be said that PV of cash…

Q: 39. Money Market Account An account invested in a money market fund grew from $67,081.20 to…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: An investment produced annual rates of return of 5%, 12%, 8% and 11% respectively over the past four…

A: Average returns is the simple mean of returns generated over a period of time. This is a…

Q: An advertising campaign will cost $500,000 for planning and $50,000 in each of the next five years.…

A: Internal Rate of Return: The internal rate of return (IRR) is a financial research indicator that is…

Q: A three-month bill that was issued on an annually compounded yield of 5%. Suppose that one month has…

A: NPER0.25Annual compounded yield5%Quarterly yield1.25%Yield refers to the percentage of return from…

Q: Benefit at end of the first year Uniform benefit at end of subsequent years Useful life, in years…

A: Pay back period is period required to recover initial costs. Alternative A Cost= 500 Alternative…

Q: QUESTION 11 Takaful wishes to adjust their rates for next year, they calculate that the expected…

A: Loss ratio: It represents the losses incurred by an insurer due to claims that are paid as a…

Q: To estimate the future value of a resource, the World Bank and most businesses use _____. a. a…

A: When weighing the decision to undertake a project with long-term benefits versus one with short-term…

Q: The following are the ledgers of XYZ Company for the year ended December 31, 2017. Net Sales…

A: Financial Ratio are one of the tool to Analysis Financial Statement. Income Statement of XYZ Company…

Q: What annual rate of return is earned on a $3,300 investment when it grows to $7,100 in nineteen…

A: 4.11%

Q: Question b) Describe the yield curve that is constructed from the results in part (a) Question c)…

A: Given: Year Inflation rate Maturity risk premium Maximum Maturity risk premium Real risk free…

Q: An investment project has annual cash inflows of $3,700, $4,600, $5,800, and $5,000, for the next…

A: Discounted payback period refers to the number of years it takes for the present value of cash…

Q: REQUIRED Use the information provided below to calculate the following: 3.1 Payback Period of…

A: Pay back Period = Initial Cost / Annual Cashflow Accounting Rate of Return = Average Net Income /…

Q: 54. How many units of PRODUCT B shall be sold this coming year to break-even. 9,600 units 800 units…

A: Break Even Point is the level of sales at which the company neither earns any profit nor incurs any…

Q: Problem 6.42(b) What is the dollar amount you need to invest every year, starting at age 26 and…

A: IN the question the Present Value is not given and rate is also not mentioned. The below provided…

Q: 5 b. A project has the following costs and benefits. What is the payback period (Be exact to 1…

A: Payback period (PBP) refers to the period or duration within which the company is able to recover…

Q: Question 9-43 A project has the following costs and benefits. What is the payback period? Year Costs…

A: The objective of this question is to calculate the payback period of a project. The payback period…

Q: expects this recent year as of Decem Original Cost $60 70 80

A: Inventory is valued at cost or market value, which ever is lower.Marrket value is the replacement…

Q: Given the future cash flows (from cost savings) of an equipment for the next three years, use a…

A: 1. Profitability Index - It is the ratio that measures the return on investment made in the years by…

Q: 22 [Question text] He & She Bhd has an inventory turnover rate of 6, a payables turnover rate of…

A: Days sales of inventory = 360/inventory turnover rate = 360/6 = 60 days…

Q: An investment of $200,000 declined to $100,000 at the end of year one, and rebounded to $150,000 at…

A: RETURN ON INVESTMENT Return on investment or return on costs is a ratio between net income and…

Q: A project has estimated annual net cash flows of $30,500. It is estimated to cost $115,900.…

A: Payback period is the period required to recover initial investment of the project that is being…

Q: What is gross operating income over the next year to the nearest dollar for an apartment building…

A: The gross operating Income will be gross Revenue less the amount of allowance for credit loss.…

Q: Question 5 of 50 1 Points The budget of a company for next period shows that it would breakeven at a…

A: 1. Break Even Sales= Fixed Cost/CM ratio Calculation to Be made CALCULATION PARTICULAR AMOUNT…

Q: Consider the following investment alternatives: Investment Rate Compounding 6.187% Annual 6.0272%…

A: Investment Rate compounding A 6.187% Annual B 6.0272% Daily C 6.0962% Quarterly D 6.0892%…

Question

What was the Bread Division's minimum required rate of return last year?

A. 12%
B. 4%
C. 15%
D. 20%

The following information relates to last year's operations at the Bread Division of
Rison Bakery, Inc.:
Residual income
P12,000
Р60,000
Net operating income
Sales
Р300,000
Average operating assets
P400,000

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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 Introduction

VIEW

Step 2 Solution

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

1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the internal rate of return for each product.
Problem 4. Which of the following investment opportunities all maturing at the end of 2 years and requiring the rate of return of 6% would you choose? Investment Compounding Future Value 1 Annually P1,123,600.00 Monthly Quarterly 2 P1,127,159.78 3 P1,126,492.59
D-79 The rate of return on an investment of $1500 that doubles in value over a 4-year period, and producen a $300 annualcash flow, is nearest to which value? (a) 15% (b) 20% (c) 25% (d) 30%
Question 7 A company monitored the cost of its product inspection for 8 years. The costs were AED 100 per year for the first 4 years, but increased consistently by AED 10 per year the last 4 years. The interest rate was 10% per year. A AED 906.63 AED 1,943.40 B. Calculate the total present worth in year-0. c. AED 1,510.59 Calculate the future worth in year-8. AED 875.71 D. AED 704.66 E. AED 722.16 F.
None
QUESTION 109 If $200 is invested at the end of each year for 8 years at a rate of 12% what will the ending value of the investment be? TRUE OR FALSE
Asap
2
What annual rate of return is earned on a $10,000 investment when it grows to $15,000 in 10 years? Multiple Choice 5.00 percent О 1.50 percent О 3.97 percent О 4.14 percent
Question 6 How long would it take you to double your money in an investment if it Earns 3.75% compounded quarterly ? Answer should be be rounded to the nearest months
Assistance
Investment End of Year A B C 1 $ 13,000 $ 18,000 2 13,000 3 13,000 4 13,000 5 13,000 $ 13,000 6 13,000 54,000 7 13,000 8 13,000 9 13,000 10 13,000 18,000 Assuming an annual discount rate of 23 percent, find the present value of each investment. a. What is the present value of investment A at an annual discount rate of 23 percent? b. What is the present value of investment B at an annual discount rate of 23 percent? c. What is the present value of investment C at an annual discount rate of 23 percent?