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While reviewing last year's performance outcomes for comparison to this year, Jennifer finds several pieces are missing. Apparently, a virus attacked select components of the system's memory, and the back-up information was too difficult to extract from the file. She knows that all three divisions use the corporate tax rate (26%), minimum rate of return (10%), and WACC (8%) to determine their respective RI and EVA metrics. The following information reflects the components that Jennifer could identify for each of the three divisions in the company. Sales Operating income After-tax operating income Operating assets Total assets Current liabilities ROI RI EVA Profit margin Asset turnover Industrial $125,000 $9,000 A $80,000 $100,000 $5,000 B с D E F LL Technology G $19,200 H I $188,000 J K 10% $2,848 L 2 Service M N $15,540 O P $9,000 $11,000 $7,780 14.0% R

While reviewing last year's performance outcomes for comparison to this year, Jennifer finds several pieces are missing. Apparently, a virus attacked select components of the system's memory, and the back-up information was too difficult to extract from the file. She knows that all three divisions use the corporate tax rate (26%), minimum rate of return (10%), and WACC (8%) to determine their respective RI and EVA metrics. The following information reflects the components that Jennifer could identify for each of the three divisions in the company. Sales Operating income After-tax operating income Operating assets Total assets Current liabilities ROI RI EVA Profit margin Asset turnover Industrial $125,000 $9,000 A $80,000 $100,000 $5,000 B с D E F LL Technology G $19,200 H I $188,000 J K 10% $2,848 L 2 Service M N $15,540 O P $9,000 $11,000 $7,780 14.0% R

FINANCIAL ACCOUNTING
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) Fill in the missing items (lettered A through R) for each of the three divisions. For ROI calculations, operating assets are considered investments. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round ROI to 2 decimal places, e.g. 15.25%, profit margin to 1 decimal place, e.g. 15.2% and asset turnover to 4 decimal places, e.g. 15.2516.) Sales Your answer is partially correct. Operating income After-tax operating income $ Operating assets Total assets Current liabilities ROI Residual income EVA Profit margin Asset turnover eTextbook and Media $ $ Industrial $125,000 $9,000 6660 $80,000 $100,000 $5,000 11 1000 -940 7 1.56 A $ % B с D % E $ F $ Technology 376000 $19,200 14208 142080 $188,000 46000 10% 0 $2,848 3.78 2 G $ H I K % L $ $ $ Service 111000 21000 $15,540 45400 106000 $9,000 48.44 $11,000 $7,780 14.0% 1.05 M N P % Q R SUPPO Assistance Used
Transcribed Image Text:(a) Fill in the missing items (lettered A through R) for each of the three divisions. For ROI calculations, operating assets are considered investments. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round ROI to 2 decimal places, e.g. 15.25%, profit margin to 1 decimal place, e.g. 15.2% and asset turnover to 4 decimal places, e.g. 15.2516.) Sales Your answer is partially correct. Operating income After-tax operating income $ Operating assets Total assets Current liabilities ROI Residual income EVA Profit margin Asset turnover eTextbook and Media $ $ Industrial $125,000 $9,000 6660 $80,000 $100,000 $5,000 11 1000 -940 7 1.56 A $ % B с D % E $ F $ Technology 376000 $19,200 14208 142080 $188,000 46000 10% 0 $2,848 3.78 2 G $ H I K % L $ $ $ Service 111000 21000 $15,540 45400 106000 $9,000 48.44 $11,000 $7,780 14.0% 1.05 M N P % Q R SUPPO Assistance Used
While reviewing last year's performance outcomes for comparison to this year, Jennifer finds several pieces are missing. Apparently, a virus attacked select components of the system's memory, and the back-up information was too difficult to extract from the file. She knows that all three divisions use the corporate tax rate (26%), minimum rate of return (10%), and WACC (8%) to determine their respective RI and EVA metrics. The following information reflects the components that Jennifer could identify for each of the three divisions in the company. Sales Operating income After-tax operating income Operating assets Total assets Current liabilities ROI RI EVA Profit margin Asset turnover Industrial $125,000 $9,000 A $80,000 $100,000 $5,000 B с D E F Technology G $19,200 H 1 $188,000 J K 10% $2,848 L 2 Service M N $15,540 O P $9,000 Q $11,000 $7,780 14.0% R
Transcribed Image Text:While reviewing last year's performance outcomes for comparison to this year, Jennifer finds several pieces are missing. Apparently, a virus attacked select components of the system's memory, and the back-up information was too difficult to extract from the file. She knows that all three divisions use the corporate tax rate (26%), minimum rate of return (10%), and WACC (8%) to determine their respective RI and EVA metrics. The following information reflects the components that Jennifer could identify for each of the three divisions in the company. Sales Operating income After-tax operating income Operating assets Total assets Current liabilities ROI RI EVA Profit margin Asset turnover Industrial $125,000 $9,000 A $80,000 $100,000 $5,000 B с D E F Technology G $19,200 H 1 $188,000 J K 10% $2,848 L 2 Service M N $15,540 O P $9,000 Q $11,000 $7,780 14.0% R
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