The Holmes Division recorded operating data as follows for the past year:SalesOperating IncomeAverage Operating AssetsShareholders' EquityResidual Income$200,000$ 25,000$100,000$ 80,000$ 13,000For the past year, what was the minimum required rate of return?A)B)C)D)12%.11%.14%.13%.

Minimum required rate of return is the return which companies wants and have to have earn because it…

Answered: The Holmes Division recorded operating…

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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The Millard Division's operating data for the past two years are provided below: Year 1 Year 2 Return on investment 10% 24% Net operating income ? $380,000 Turnover ? 4 Margin ? ? Sales $3,210,000 ? Millard Division's margin in Year 2 was 120% of the margin in Year 1. The sales for Year 2 were:
During the current year, Sokowski Manufacturing earned income of $319,026 from total sales of $6,163,900 and average capital assets of $10,644,990. What is the ROI? Round to the nearest to the hundredth, two decimal places and submit the answer in a percentage.
The Millard Division's operating data for the past two years are provided below: Year 1 Year 2 Return on investment 10% 24% Net operating income $ 740,000 Turnover ? 3 Margin Sales $ 3,390,000 Millard Division's margin in Year 2 was 120% of the margin in Year 1. The sales for Year 2 were:
j
CONSIDER THE FOLLOWING INFORMATION FOR A PARTICULAR COMPANY. CALCULATE THE TURNOVER. BRAVO COMPANY SALES $315,000 NET OPERATING INCOME 31,500 MARGIN 10% RETURN ON INVESTMENT 25%
The Millard Division's operating data for the past two years are provided below: Return on investment Net operating income Turnover Margin Sales Multiple Choice O $264,800 $232,000 $99,300 Year 1 $132,400 15% ? 77 ? $ 3,310,000 Millard Division's margin in Year 2 was 130% of the margin in Year 1. The net operating income for Year 1 was: (Round intermediate percentage computations to the nearest whole ? Year 2 20% $ 580,000 5 ? ?
The Emergency Medical Services Company has two divisions that operate independently of one another. The financial data for the year 20x5 reported the following results North South $4,440,000 $3,940,000 1,110,000 910,000 920,000 645,000 6,000,000 5,000,000 Sales Operating income Taxable income Investment The company's desired rate of return is 10%. Income is defined as operating income. a. What are the respective return-on-investment ratios for the North and South divisions? Round ROI to the nearest whole percentage. ROI North South b. What are the respective residual incomes of the North and South divisions? Residual income North S South S c. Which division has the better return on investment and which division has the better residual income figure? Return on investment i # Residual income
The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 9%. Management calculated a weighted average cost of capital (WACC) of 3%. Allied's corporate tax rate is 30%. $700,000 105,000 Sales Operating income Total assets 1,600,000 400,000 Current liabilities What is the division's Return on Investment (ROI)? O A. 57.14% O B. 43.75% O C. 6.56% O D. 15.00%
The Millard Division's operating data for the past two years are provided below: Year 1 Year 2 Return on investment 12 % 36 % Net operating income ? $ 660,000 Turnover ? 3 Margin ? ? Sales $ 3,350,000 ? Millard Division's margin in Year 2 was 150% of the margin in Year 1. The net operating income for Year 1 was: (Round intermediate percentage computations to the nearest whole percent.) Multiple Choice $440,000 $268,000 $402,000 $804,000
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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 minimum required rate of return was
The following data pertain to Turk Company's operations last year: Sales Net operating income Contribution margin Average operating assets Stockholders' equity Plant, property, & equipment Turk's return on investment for the year was: Multiple Choice O O 20% 4% 36% 15% $ 900,000 $ 36,000 $ 150,000 $ 180,000 $ 100,000 $ 120,000

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