Which of the choices best describe the statements below?Statement 1. Department A has Operating profit of 30,000, Operating assets of100,000 JImputed interest of 12,000 . Return an investment is 30s and Residualincome is 18,000 An additional investment of P10,000 is offered that wil increaseoperating income by Pl,+00. Dapartment A manager would resist the new investmentf they were to be judged on RI. but would welcome the investment if they were judgedaccording to ROl aince the there would be decrease of P200 in residual income fromthe imvestment, and an increase of 1.5% in ROI-Statement 2. f tranafer prices are to be based on cost, then the costa should be actualconts rather than standard conts.Statement 3, Asegnent margin is computed by deducting vaniable and traceable fixedexpenses from the sales of a segment.Statement + Labor turmover rate, Percentage of revenue generated by new productsand services and Average time teken to develop new products and services aremeasures under innovation and learning.Statement 5. Responsibility accounting functions most effectively in decentralizedorganizations.False.False, True, True, TrueTrue,False, True, False, TrueAll Statements are true.All Statements are false What was the Paper Division's net operating income last year?The following information relates to last year's operations at the Paper Division ofGermane Corporation:15%Minimum required rate of returnReturn on investment (ROI)SalesTurnover (on operating assets)18%P810,0005 timesP24,300P29,160P145,800P162,000Product differentiation is evident in the following cases EXCEPTThe entity creates products that have features that are significantly of a high levelcompared to competitors.The entity continuously manufactures products in a pace that competitors cannotmatch.The entity provides superior customer service with the organization mindset of quickresponse.The entity sells products that are priced significantly lower compared to competitors.

Responsibility Accounting The objective of the responsibility accounting which is spread in all…

Answered: Which of the choices best describe the…

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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A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: Note: Loss amounts should be indicated by a minus sign. Round your percentage answers to nearest whole percent. Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual income A $ 9,180,000 $ 3,060,000 13 % 11 % $ $ $ Company B 7,300,000 296,000 10 % 355,200 % C $ 4,770,000 $ 1,908,000 $ % 16% 95,400
Division Y has generated sales revenue of $260,000 and achieved operating income of $18,500 using $20,000 of invested assets. If management desires a minimum rate of return of 10%, the profit margin would be _____. a.14.4% b.19.5% c.7.1% d.10.2%
Megamart provides the following information on its two investment centers. Investment Center Electronics Sporting goods Sales $ 63,460,000 19,050,000 Income $ 3,173,000 2,286,000 Average Assets $ 16,700,000 12,700,000 Exercise 22-10 (Algo) Computing return on investment and residual income; investing decision LO A1 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 12% of average assets. Compute residual income for each center. Which center generated the most residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? The target return is 12%.
Required Complete the following table Sales Operating Income Average Operating Assets Return on Investment Minimum Required Rate of return % Residual Income A 400,000 160,000 20% 15% B Company 750,000 45,000 18% 50,000 C 600,000 150,000 12% 6,000
3. Saved Dade Corp. has residual income of $16,60O. If operating income equals $37,000 and the minimum required rate of return is 8%, what are average invested assets? Multiple Choice $382,500 $510,000 $127,500 $255,000
1. Roy Toy, a division of Fun Corp. has a net operating income of $60000 and average operating assets of $300000. The required rate of return for the company is 15%. What is the division's residual income? a. $240000 b. $45000 c. $15000 d. $51000 2. If the manager of Roy To division is evaluated based on residual income, will she want to make an investment of $100000 that would generate an additional net operating income of $18000 per year?a. Yesb. No
Determining missing items in return on investment computation
b
All parts are under one question, per your policy all parts can be answered. 3. Analysis of an expansion project Companies invest in expansion projects with the expectation of increasing the earnings of its business. Consider the case of Yeatman Co.: Yeatman Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs: Year 1 Year 2 Year 3 Year 4 Unit sales 3,000 3,250 3,300 3,400 Sales price $17.25 $17.33 $17.45 $18.24 Variable cost per unit $8.88 $8.92 $9.03 $9.06 Fixed operating costs $12,500 $13,000 $13,220 $13,250 This project will require an investment of $15,000 in new equipment. Under the new tax law, the equipment is eligible for 100% bonus deprecation at t = 0, so it will be fully depreciated at the time of purchase. The equipment will have no salvage value at the end of the project’s four-year life. Yeatman pays a constant tax rate of 25%, and it has a weighted average cost of…
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Sales Costs $ 29,000 Assets 13,500 Net income $15,500 Total $9,800 The company has predicted a sales increase of 12 percent. It has predicted that every item on the balance sheet will increase by 12 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here? Multiple Choice O O O $24,384 $16,655 $16,642 Balance Sheet $9,800 Debt $16,649 $ 4,100 5,700 $9,800 Equity Total
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Determine the IMU% which will be required to achieve a 5.2% profit with the following figures: • Markdowns 4.0% • Employee discounts • Expenses • Shortages • Cash discounts 0.9% 45.0% 1.2% 1.1% • Alteration costs 0.9% a.) Calculate the IMU% for this department b.) What is the Reduction% for this department

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