The following selected data pertain to the belt division of Allen Corp. for last year: * Sales $2,000,000 * Average operating assets $500,000 * Net operating income $300,000 * Turnover 4.0 * Minimum required return 18% How much is the residual income? 1) $0 2) $1,500,000 3) $210,000 4) $300,000

The following selected data pertain to the belt division of Allen Corp. for last year: * Sales $2,000,000 * Average operating assets $500,000 * Net operating income $300,000 * Turnover 4.0 * Minimum required return 18% How much is the residual income? 1) $0 2) $1,500,000 3) $210,000 4) $300,000

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: For its three investment centers, Concord Company accumulates the following data: I Sales $2,280,000…

A: The objective of the question is to calculate the expected return on investment (ROI) for each of…

Q: The Millard Division's operating data for the past two years are provided below. Return on…

A: Margin is expressed in percentage and is calculated by dividing the net operating income with the…

Q: Crawford Corp. has an ROI of 23% and a residual income of $10,400. If operating income equals…

A: RETURN ON INVESTMENT Return on Investment is the Ratio Between Net Operating Income & Average…

Q: Refer to the following information. What are the average operating assets for Division B? Sales Net…

A: The return on investment is calculated as net income divided by average operating assets. ROI = Net…

Q: required: The residual income for the AB Division last year was The return on investment last year…

A: Residual income is the remaining income after meeting all the costs that business owes. Formula:…

Q: Assume the Residential Division of Kopper Faucets had the following results last year: $ 16,000,000…

A: Return on investment helps in measuring the performance by evaluating the profit and efficiency of…

Q: Chavin Company had the following results during August: net operating income, $300,000; turnover, 4;…

A: Average Operating Assets The assets which are used in the ongoing business operations of the company…

Q: Washington Company has two divisions: the Adams Division and the Jefferson Division. The following…

A: Residual income means the income that one might continue to receive even after completion of the…

Q: The Millard Division's operating data for the past two years are provided below: Year 1 Year 2…

A: Return on investment is profitability ratio which shows operating income earned by investment…

Q: Q12. The corporate Division's operating data for the past two years is as follows: Year 1 Year 2…

A: Compute Year 2 margin from ROI and turnover ROI = margin*turnover 24% = margin * 2 margin = 12%…

Q: The Electronics Division of Anton Company reports the following results for the current year:…

A: ROI of a company refers to its profitability which is calculated as a ratio of the income to the…

Q: The Dry Wall Division reports the following operating data for the past two years: Year 1…

A: The objective of the question is to find the net operating income in Year 2 for the Dry Wall…

Q: ata follow for the Consumer Products Division of Kisler Inc.: Year 1 Year 2 ales $9,310,000…

A: The financial ratio analysis is usually carried out by ascertaining four broad categories of ratios…

Q: The following are selected data for the division for the consumer products of ABC Corp for 2020:…

A: The answer for the multiple choice question and the calculation of return on investment for the…

Q: Sales P 10,000,000 Average invested capital…

A: Solution: Asset turn-over ratio of a division represents the efficiency of division's assets in…

Q: The Box Manufacturing Division of the Allied Paper Company reported the following results from the…

A: Introduction:-The following formula used to calculate as follows under:-Return on…

Q: The following data are for the Akron Division of Consolidated Rubber, Incorporated: Sales Net…

A: Turnover reflects the no of times, the business is able to make sales of its average capital…

Q: Use the following information to answer question 4-5. Operating data of Peter Company for last year…

A: 4. Turnover = sales / Average operating assets 1.5 = $900,000 / Average operating assets…

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: The Millard Division's operating data for the past two years are provided below: Year 1 Year…

A: The objective of the question is to find the net operating income for Year 1 of the Millard…

Q: lowing data are for the Akron Division of Consolidated Rubber, Inc.: Sales Net operating income…

A: The return on investment (ROI) is to measure the profitability of the investment. It is computed by…

Q: Data follow for the Consumer Products Division of Kisler Inc.: Year 1 Year 2 Sales $9,310,000…

A: Margin = (Net operating income / Sales) Turnover = (Sales / Average operating assets) ROI = (Net…

Q: The following are selected data for the division for the consumer products of ABC Corp for 2020:…

A: Here in this question, we are required to calculate the residual value. Residual value is a excess…

Q: Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost-of-capital of 15.8%.…

A: Economic value added is the difference between operating profit and amount of return on invested…

Q: e Millard Division's operating data for the past two years are provided below: Year 1 Year 2…

A: Answer :Calculation of sales for year 2 Margin = Return on on investment / Turnover Margin = 36%/3…

Q: The Central Division of Burlington Company reported the following operating data for the past year…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub- parts for…

Q: The Millard Division's operating data for the past two years are provided below: Return on…

A: Lets understand the basics.Formula for calculating net operating income are,First we will need to…

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: $14,720,000 Net operating income $1,000,960 Average operating assets $4,000,000 The company’s…

A: Given : Sales $14,720,000 Net operating income $1,000,960 Average operating assets…

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: The sales for Year 2 were: Multiple Cholce $1,583,333 $3,210,000 $6,333,333 $6,666,666

A: Introduction:- First we need to calculate margin Margin =Return on investment / Turnover x 100 =0.24…

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

A: Formula; Turnover=Net operating incomeAverage operating assets

Q: Selected financial data for Woody Company's Furniture Division is as follows: Sales Operating income…

A: Here's the calculation:Sales: $2,100,000Operating Income: $420,000Total Assets: $1,050,000ROI =…

Q: Division I Division II Income ₱ 02,700,000 ₱ 00,600,000 Average invested capital ₱ 18,000,000…

A: Return on investment is also written as ROI. It is the rate of return earned on the investment. It…

Q: The following are selected data for the division for the consumer products of ABC Corp for 2019:…

A: Solution: Return on sales = net income / sales = 2000000/ 50000000 = 4%

Q: CONSIDER THE FOLLOWING INFORMATION FOR A PARTICULAR COMPANY. CALCULATE THE TURNOVER. BRAVO COMPANY…

A: Approach to solving the question:To calculate the turnover for Bravo Company, we need to understand…

Q: $845,000, and the hurdle rate is 6%. Calculate the residual income if sales increase by 10% and the…

A: King Corporation Sales revenue = $1,690,000 Net operating income = $118,300 Average invested asset =…

Q: What is the Investment Turnover for Stevenson Corporation, given the following info: Invested Assets…

A: Investment turnover: Investment turnover is a financial ratio that measures the efficiency of a…

Q: The Millard Division's operating data for the past two years are provided below: Year 1 Return on…

A: Net Operating Income (NOI) is a financial measure that represents the profitability of a company's…

Q: Want Correct Answer

A: Step 1: Calculate Average Operating Assets using Turnover Formula: Average Operating Assets= Sales/…

Q: The following are selected data for the division for the consumer products of ABC Corp for 2020:…

A: Assets turnover ratio = Sales / Average Invested capital where, Average Invested capital =…

Q: The following data are for the Akron Division of Consolidated Rubber, Incorporated: Sales $ 750,000…

A: ANSWER Here the question is asked to find minimum required ate return, So we can find minimum…

Q: The following data pertain to Turk Company's operations last year: Sales Net operating income…

A: Return on Investment - Return on Investment is the income earned on an investment made by the…

Q: Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate…

A: RETURN ON INVESTMENTReturn on investment is one of the profitability ratios which shows how much…

Question

The following selected data pertain to the belt division of Allen Corp. for last year:

* Sales $2,000,000

* Average operating assets $500,000

* Net operating income $300,000

* Turnover 4.0

* Minimum required return 18%

How much is the residual income? 1) $0

2) $1,500,000

3) $210,000

4) $300,000

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

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

Need Answer Pls provide fast..
The following are selected data for the division for the consumer products of ABC Corp for 2020: Sales P 10,000,000 Average invested capital 4,000,000 Net Income 400,000 Cost of Capital 8% What is the return on sales for the division? 1. 4% 2. 8% 3. 10% 4. 20% O 1 O 2 O 3 O 4
Refer to the following information. What are the sales for Division B? Sales Net operating income Average operating assets Return on investment Margin Turnover Target ROI $208,333 O $120,000 $18,000 O $1,250,000 $1,200,000 Division A Division B ? ? $48,000 $420,000 ? 0.2 2.1 17% $18,000 ? ? 15% 0.015 14% Division C $1,345,000 $82,000 ? ? ? 20% 8%
The following are selected data for the division for the consumer products of ABC Corp for 2020: Sales P 10,000,000 Average invested capital 4,000,000 Net Income 400,000 Cost of Capital 8% What is the amount of residual income for the division? 1. P 80,000 2. P 200,000 3. P 320,000 4. P 400,000 0 1 O 2 O 3 4
The following data are for the Akron Division of Consolidated Rubber, Incorporated: Sales $ 750,000 Net operating income $ 45,000 Average operating assets $ 250,000 Stockholders' equity $ 75,000 Residual income $ 15,000 For the past year, the turnover used in ROI calculations was
Assume the Residential Division of Kipper Faucets had the following results last year: What is the division’s RI? a. $(140,000) b. $104,000 c. $140,000 d. $(104,000)
The following are selected data for the division for the consumer products of ABC Corp for 2019: Sales 50,000,000 Average invested capital (assets) 20,000,000 Net income 2,000,000 Cost of capital 8% What is the return on investment for the division? 2% 4% 8% 10% Group of answer choices 1 2 3 4
What is the Residual Income for Stevenson Corporation, given the following info: Invested Assets = $550,000 Sales = $660,000 Income from Operations = $99,000 Desired minimum rate of return = 15.0% O $16,500 O $17,280 O $14,850 O $0
The Millard Division's operating data for the past two years are provided below: Year 1 Return on investment Net operating income Turnover Margin Sales 10% ? ? ? Year 2 24% $ 380,000 4 ? $ 3,210,000 Millard Division's margin in Year 2 was 120% of the margin in Year 1. The net operating income for Year 1 was: Note: Round your intermediate percentage calculations to the nearest whole percent. ?
Assume division 1 of the XYZ Company had the following results last year (in thousands) Management's required rate of return is 81% and the weighted average cost of capital is 6% Its effective tax rate is 30% Sales$ 9,000,000 Operating expenses $ 1,200,000 Operating income $1,500,000 Total revenue$ 2,000,000 Total assets $ 12,000,000 Current liabilities$ 5,000,000 What is the division's residual income? $100,000 $200,000 $500, 000 $ 540,000 Assume division 1 of the XYZ Company had the following results last year (in thousands). Management's required rate of return is 8% and the weighted average cost of capital is 6% effective tax rate is 30% . \table [[Sales, $9, 000, 000
Assume the Hiking Shoes division of the Simply Shoes Company had the following results last year (in thousands). Management's target rate of return is 30% and the weighted average cost of capital is 5%, its effective tax rate is 35%. Sales Operating income Total assets Current liabilities What is the division's Residual Income (RI)? ⒸA. $280,000 OB. $1,750,000 OC. $800,000 OD. $1,800,000 $5,000,000 2,000,000 4,000,000 840,000
The Dry Wall Division reports the following operating data for the past two years: Profit margin ratio Asset turnover Divisional assets After-tax income Stockholders' equity Sales Multiple Choice 18%. Year 1 70% 20% 3.5 ? Year 2 ? 2 The return on investment at the Dry Wall Division was exactly the same in Year 1 and Year 2. The profit margin ratio in Year 2 was: 4 $ 159,000 $ 41,800 ? $ 83,600 $ 134,000 ? Ya