While reviewing last year's performance outcomes for comparison to this year, Linda 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 Linda 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 Technology $125,000 $9,000 A $80,000 $100,000 $5,000 8 C D E L $16,800 H $197.000 J 10% K $632 2 Service M N $15,318 0 $10,500 Q $10,700 $6,558 13.8% R
While reviewing last year's performance outcomes for comparison to this year, Linda 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 Linda 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 Technology $125,000 $9,000 A $80,000 $100,000 $5,000 8 C D E L $16,800 H $197.000 J 10% K $632 2 Service M N $15,318 0 $10,500 Q $10,700 $6,558 13.8% R
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![While reviewing last year's performance outcomes for comparison to this year, Linda 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 Linda 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
Sales
Operating
income
After-tax
operating
income
Operating
assets
Total
assets.
Current
liabilities
ROI
Residual
income
EVA
Profit
margin
Asset
turnover
Show Transcribed Text
$
$
Industrial
$125,000
$9,000
$
A
$80,000
$100,000
$5,000
B
Ć
D
E
F
Industrial
$125,000
$9.000
$80,000
$100.000
Technology
G
$16,800
$5,000
H
I
$197,000
J
K
L
$632
с
10%
D
A $
%E
F
2 R
$
$
$
$
Service
M
N
$15,318
0
P
$10,500
Q
$10,700
$6,558
13.8%
Show Transcribed Text
Technology
$16,800
$197,000
10%
$632
2
G $
H
I
J
K
% L
S
$
$
Service
$15,318
$10,500
$10,700
$6,558
13.8%
3](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe380c7e1-1474-4c6e-960b-2d0fd4f2df5a%2F4c99fc49-e514-4b3a-8c45-2f7a1933a610%2Ff3lmxu_processed.png&w=3840&q=75)
Transcribed Image Text:While reviewing last year's performance outcomes for comparison to this year, Linda 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 Linda 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
Sales
Operating
income
After-tax
operating
income
Operating
assets
Total
assets.
Current
liabilities
ROI
Residual
income
EVA
Profit
margin
Asset
turnover
Show Transcribed Text
$
$
Industrial
$125,000
$9,000
$
A
$80,000
$100,000
$5,000
B
Ć
D
E
F
Industrial
$125,000
$9.000
$80,000
$100.000
Technology
G
$16,800
$5,000
H
I
$197,000
J
K
L
$632
с
10%
D
A $
%E
F
2 R
$
$
$
$
Service
M
N
$15,318
0
P
$10,500
Q
$10,700
$6,558
13.8%
Show Transcribed Text
Technology
$16,800
$197,000
10%
$632
2
G $
H
I
J
K
% L
S
$
$
Service
$15,318
$10,500
$10,700
$6,558
13.8%
3
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