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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

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

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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