X Company, a division of a major oil company, provides various services to the operators of oil fields in the Middle East. Data concerning the most recent year appear below: • Sales- P18,000,000 • Net operating ratio- 30% • Average Operating assets- P36,000,000 Compute the return on investment (ROI) for X Company • 25% • 20% • 15% • None of the above
Q: Is it possible that a company with a very high net income has a negative balance of cash flows from…
A: Cash Flow Statement - The Cash Flow Statement includes the inflow and outflow of cash in the…
Q: Dowell Company produces a single product. Its income statements under absorption costing for its…
A: Variable Costing - Variable costing formula = Sales - Variable Costs - Fixed Cost = Operating Income…
Q: Braxton Corp. was organized on January 1, 2010, to operate a limousines service to and from the…
A: Investing activity Investing activity are those transaction which are reflect the changes…
Q: ABC Corp has the following data in year 2020: Sales 400,000; Variable cost 300,000 and Net loss…
A: The contribution margin is calculated as difference between sales and variable costs. The…
Q: Take me to the text TC Hotel's net income for the year ended August 31, 2020 was $124,000.…
A: A cash flow statement is a financial statement that provides aggregate data regarding all cash…
Q: August 2022 data Work-in-process inventory, August 1, 2022 Direct materials inventory, August 1,…
A: The total manufacturing costs are calculated as sum of direct materials, direct labor and…
Q: Calculate the breakeven point and contribution margin. Breakeven point 38,550 units Fixed cost $…
A: At Break-even point, the amount of sales are equal to the total expenses generating the net income…
Q: A higher dividend payout ratio entails? A• Lower marginal cost of capital B• Higher investment…
A: Dividend Payout Ratio - It is the ratio of Net income generated by the company of which a portion is…
Q: The following data are available for X Company: • Ave Selling price of 16 per unit…
A: The contribution margin is calculated as difference between sales and variable costs. The operating…
Q: Current Assets Dorothy Corporation had the following accounts in its year-end adjusted trial…
A: Any of a company's securities that are intended to be sold or used in the next year as a part of…
Q: Acquirer Cash Flow Target Cash Flow Pro Forma Cash Flow Acquirer Shares Outstanding Pro Forma Shares…
A: Acquirer cash flow 122496 Acquirer outstanding share 66258 Acquirer cash flow per share…
Q: Sunland Horticulture provides and maintains live plants in office buildings. The company's 884…
A: Contribution is the excess revenue after absorption of variable cost. After deducting fixed cost…
Q: John bought a small boat for $17,000. He made $2,500 down payment on it. The bank's loan was for 60…
A: Finance Charge - Finance charge is the additional amount to be paid on the flexibility in payment to…
Q: Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.…
A: Journal entry is a primary entry that records the financial transactions initially. The transactions…
Q: 1. Sue Feria opened a travel agency business on April 5, 2019. A month after she was able to comply…
A: a)
Q: Which two accounts are affected when a business buys supplies on account? O Supplies and Accounts…
A: Answer - Double entry Accounting is a method of recording transactions in Business and Book…
Q: Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories.…
A: Predetermined overhead rate = Total overhead*/Total machine hour = $29300/4000 = $7.325 *Total…
Q: Manufacturing cost data for Wildhorse Company, which uses a job order cost system, are presented…
A: Computation of above requirement are as follows
Q: A 1 Sources of Cash 2 Cash 3 Stock Issued 4 Debt Issued 5 6 7 8 9 Total Sources $130,135 $120,513…
A: Fund flow statements show the sources and uses of money during a specific time period. The causes of…
Q: REQUIRED Study the information given below and calculate the Accounting Rate of Return on initial…
A: Investment - The purchase of an item with the intention of making a profit or a capital gain is…
Q: Assume that markup is based on selling price. Calculate the dollar markup and cost. Note: Round your…
A: Markup Price - Markup price is the difference between the Cost of the product and the selling price…
Q: Piper Corp. had a taxable net income of P5,500,000 and total assets of P100 million. It had the…
A: We are taking itemized deductions instead of optional deduction of 40% of Net income. For interest…
Q: Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company…
A: Activity-based costing is used to distribute the unallocated overhead on the basis of activity.…
Q: P3.5A (LO 2, 3, 4) Financial Statement On November 1, 2020, the account balances of Hamm Equipment…
A: Financial Statements - Financial Statements include Income Statement, Statement of Owner's Equity,…
Q: A debt of P100,000 with interest at the rate of 16% compounded annually is to be amortized by 3…
A:
Q: At May 31, 2022, the accounts of Sandhill Company show the following. 1. 2. 3. 4. May 1…
A: Total manufacturing cost = Direct Material + Direct labor + Manufacturing overhead
Q: Rio Company pays time and a half for hour in excess of 40 hours per week. An individual is paid…
A: Weekly Earning of Employee: When we talk about "Weekly Earnings," we're referring to the typical…
Q: Purchase-Related Transactions The Stationery Company purchased merchandise on account from a…
A: Introduction: A perpetual inventory system is an inventory control technique that use a real-time…
Q: Lucas father is the CEO of a textile company. His father tells him that the company may file for…
A: Bankruptcy - It is a process wherein company unable to discharge his debts and wants to relief from…
Q: 4. Average collection period 5. Asset turnover ratio 6. Profit margin on sales + days %
A: Introduction:- Ration analysis is used to identify financial health of company. It is measured from…
Q: Flexgen Corporation uses trucks to transport bottles from the warehouse to different retail outlets.…
A: The total cost of truck would be calculated as the total gasoline costs and insurance costs. The…
Q: ABC Corp adopted the ABC system. Data are as follows: Activity Set up Cost Driver No of Set ups No…
A: working notes: Setup cost = Budgeted Overhead x No .of setups / Budgeted setups…
Q: C.) If Cullumber's sales were to increase by $100,000 with no change in fixed expenses, by how much…
A: Introduction:- CVP analysis is used to identify the changes in costs and volume affect a company's…
Q: To date, Ken has cumulative earnings of $141,0000. This week Kent is paid $3,000. The total amount…
A: Social security tax refers to the amount that is collected from the employers and employees by the…
Q: On September 18, 2022, Dozer Dozz, optometrist, established the Dozz Eye Clinic. Transactions…
A: In every organization, there are a lot of financial transactions every day. It is impossible for an…
Q: All raw materials purchases are made on credit. Prepare journal entries to record the: 1. Purchase…
A: Company needs to make a proper journal entry for materials purchased and used especially as the…
Q: Compute the amount to be paid for each of the four separate invoices assuming that all invoices are…
A: Discount - Purchase Discount is given as 2/10, n/30. Means If the payment made with in 10 days the…
Q: Employment Income Income (Loss) From Business Rental Income (Loss) Taxable Capital Gains Allowable…
A: Total income refers to the gross income that is earned from various sources after deducting all…
Q: 7.1. Calculate the annual depreciation over five years on a vehicle that had a purchase price (cost…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Information for 2020 Beginning inventory of direct materials, 1/1/2020 Purchases of direct materials…
A: Manufacturing costs are those which are incurred by an entity on the production of the goods. It…
Q: X Corp is in the process of improving its efficiency / productivity through implementation of new…
A: Productive ratio is calculated by comprising between output with input. it is calculated by dividing…
Q: Days' cash on hand Financial statement data for years ending December 31 for Newton Company follow:…
A: Days Cash on Hand : It is a measure in which a company can pay it's operating expense with available…
Q: R GLO401 (Algo) - Based on Problem 4-1A LO P1, P2 Prepare journal entries to record the following…
A: Schedule of Receivables - Schedule of Receivables includes the ledgers of all the receivables.…
Q: P3.5A (LO 2, 3, 4) Financial Statement On November 1, 2020, the account balances of Hamm Equipment…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Arensky Company uses normal costing to account for overhead in its job costing system. There are 2…
A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…
Q: July 1 Purchased merchandise from Griffin Company for $10,400 under credit terms of 1/15, n/30, FOB…
A: 1. Impact on Income - Impact on income statement represents all the transactions that affects the…
Q: Please interpret the numbers and compare the number, no required to explain the theory. Also answer…
A: Current Ratio = Current Assets/ Current Liabilities Quick Ratio = (Current Assets - Inventory -…
Q: All else being equal, which of the following results in greater accretion? Increasing takeover…
A: When acquiring company's earning per share increases after the acquisition of target company…
Q: An example of a staff management function would be A. determining that new equipment is required. B.…
A: Management Accounting - In order to assist managers in making decisions, management accounting can…
Q: SHCJ Research Laboratory requires P3,500,000 for original construction, P500,000 at the end of every…
A: Present value of annual operating and maintenance expenses Year Cash flow Annuity factor@12%…
X Company, a division of a major oil company, provides various services to the operators of oil fields in the Middle East. Data concerning the most recent year appear below:
• Sales- P18,000,000
• Net operating ratio- 30%
• Average Operating assets- P36,000,000
Compute the
Step by step
Solved in 2 steps
- Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales Net operating income Average operating assets Required: 1. Compute the margin. Note: Round your answer to 2 decimal places. 2. Compute the turnover. Note: Round your answer to 2 decimal places. 3. Compute the return on investment (ROI). Note: Round your intermediate calculations and final answer to 2 decimal places. 1. Margin 2. Turnover 3. ROI $ 18,100,000 $ 5,500,000 $36,500,000 % %es Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales Net operating income Average operating assets Required: 1. Compute the margin. Note: Round your answer to 2 decimal places. 2. Compute the turnover. Note: Round your answer to 2 decimal places. 3. Compute the return on investment (ROI). Note: Round your intermediate calculations and final answer to 2 decimal places. 1. Margin 2. Turnover 3. ROI % $ 18,500,000 $ 6,000,000 $ 35,700,000 %Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below. Sales Net operating income. Average operating assets. Required: 1. Compute the margin. Note: Round your answer to 2 decimal places. 2. Compute the turnover. Note: Round your answer to 2 decimal places. 3. Compute the return on investment (ROI). Note: Round your intermediate calculations and final answer to 2 decimal places. 1. Margin 2. Tumover 3. ROI $ 19,000,000 $5,100,000 $ 35,000,000 % %
- Global Imex has two divisions; one located at Accra and the other in Takoradi.The following is an extract from the annual report for the 2010 financial year ACCRA TAKORADI Profit Before Depreciation 450,000 620,000 Depreciation 120,000 130,000 Non Current Assets 1,200,000 1,300,000 Current Assets 750,000 1,000,000 Current Liabilities 350,000 400,000 Cost of Capital is 20% Required (i) Using Return on Investment (ROI) and Residual Income, comment on the performance of the divisions.(ii) The Takoradi branch intends to sell one of the non-current assets with book value of GH¢120,000. This asset generates a profit of GH¢60,000. Accra also wants to acquire another asset costing GH¢90,000 that will generate a profit of GH¢40,000. To what extent will the decisions affect the performance of the divisions?Return on investment is often expressed as follows: ROI = Controllable margin Average operating assets Controllable margin Sales Sales Average operating assets (b1) Comparative data on three companies operating in the same industry follow. The minimum required ROI is 10% for all three companies. Determine the missing amounts. (Round asset turnover of Company B and return on investment of Company C to 1 decimal place, e.g. 15.2 or 15.2% and all other answers to O decimal places. e.g. 152. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Sales Net operating income Average operating assets Profit margin Assets turnover Company A Company B $1,382,000 $700,400 $165.840 $133,076 (b) $ $691.000 (c) $ (d) % (e) % Return on investment (h) Residual income S k) $ () $ Company C $4,845,000 0.5 %Segment Profitability Analysis The marketing segment sales for Caterpillar Inc. (CAT) for a recent year follow: Caterpillar Inc.Machinery and Engines Marketing Segment Sales(in millions) BuildingConstructionProducts CatJapan CoreComponents Earthmoving ElectricPower Excavation LargePowerSystems Logistics Marine &PetroleumPower Mining Turbines Sales $2,217 $1,225 $1,234 $5,045 $2,847 $4,562 $2,885 $659 $2,132 $3,975 $3,321 In addition, assume the following information: BuildingConstructionProducts CatJapan CoreComponents Earthmoving ElectricPower Excavation LargePowerSystems Logistics Marine &PetroleumPower Mining Turbines Variable cost of goods sold as a percent of sales 45% 55% 49% 51% 54% 52% 53% 50% 50% 52% 48% Dealer commissions as a percent of sales 9% 11% 8% 8% 10% 6% 5% 10% 9% 7% 9% Variable promotion expenses (in millions) 310 120 150 600 200 600 300 75 270 480 400 a. Use the sales information and the additional assumed information to…
- Return on investment is often expressed as follows: ROI Controllable margin Average operating assets Controllable margin Sales X Sales Average operating assets (b1) Comparative data on three companies operating in the same industry follow. The minimum required ROI is 10% for all three companies. Determine the missing amounts. (Round asset turnover of Company B and return on investment of Company C to 1 decimal place, e.g. 15.2 or 15.2% and all other answers to 0 decimal places, e.g. 152. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Company A Company B Company C Sales $1,580,000 $725,800 (a) $ Net operating income $173,800 $152,418 (b) $ Average operating assets $790,000 (c) $ (d) % (e) % Profit margin (f) (g) Assets turnover Return on investment (h) % 2.1 % (1) $ (k) $ (1) $ Residual income $5,387,000 0.6 % 5 %2. The Gustavo Industries in São Paulo, Brazil, reported the following results for 2020 (currency in Brazilian real, R$):« Sales R$ 400,000,000- 320,000,000- 40,800,000- 280,000,000- Variable costs Controllable fixed costs Average operating assets Gustavo's Management is considering the following independent courses of action in 2021 in order to maximize the return on investment for this division: Option1: Reduce average operating assets by R$ 80,000,000 with no change in controllable margin. Option2: Increase sales R$ 80,000,000 with no change in the contribution margin percentage. A. Compute the controllable margin and the return on investment for 2020. (25%)- B. Compute the controllable margin and the expected return on investment for each proposed option. (25%)-Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: $ 18,100,000 $ 5,500,000 $ 35,600,000 Sales Net operating income Average operating assets Required: 1. Compute the margin. (Round your answer to 2 decimal places.) 2. Compute the turnover. (Round your answer to 2 decimal places.) 3. Compute the return on investment (ROI). (Round your intermediate calculations and final answer to 2 decimal places.) 1. Margin 2. Turnover 3. ROI %
- Compute the Return on Investment (ROI) Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Required: 1. Compute the margin for Alyeska Services Company. 2. Compute the turnover for Alyeska Services Company. 3. Compute the return on investment (ROI) for Alyeska Services Company.Quantitative Problem 2: Mitchell Manufacturing Company has $1,800,000,000 in sales and $320,000,000 in fixed assets. Currently, the company's fixed assets are operating at 70% of capacity. a. What level of sales could Mitchell have obtained if it had been operating at full capacity? Do not round intermediate calculations. Round your answer to the nearest dollar. 253333 b. What is Mitchell's Target fixed assets/Sales ratio? Do not round intermediate calculations. Round your answer to two decimal places. 12.63 % c. If Mitchell's sales increase by 55%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio? Do not round intermediate calculations. Round your answer to the nearest dollar. 175978XYZ Company has two divisions, A and B. Information for each division is as follows: A Net earnings for division P 40,000 P 260,000 Asset base for division P100,000 P1,200,000 Target rate of return 15% 18% Margin 10% 20% Weighted average cost of capital 12% 12% What is the operating asset turnover for A? 1. 0.15 2. 0.10 3.4.00 4. 2.50 0 1 O 2 O 3 O 4