
1.
Compute the company’s
Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.
2.
Compute the return on investment if sales increase by $70,000 and net operating income increased by $18,200. Will it be possible to increase in operating assets?
Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.
3.
Compute the return on investment if expenses are reduced by $14,000.
Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.
4.
Compute the return on investment if only operating asset is reduce by $70,000 and there is no change in sales or net operating assets.
Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

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Chapter 12 Solutions
Managerial Accounting for Managers
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- On January 1, 2024, Sunfish Co. issued a $22 million, 8%, 6-year convertible bond with annual coupon payments. Each $1,000 bond was convertible into 35 shares of Sunfish's common shares. Shark Investments purchased the entire bond issue for $22.7 million on January 1, 2024. Shark estimated that without the conversion feature, the bonds would have sold for $21,013,098 (to yield 9%). On January 1, 2025, Shark converted bonds with a par value of $8.8 million. At the time of conversion, the shares were selling at $30 each. Required Prepare the journal entry to record the issuance of convertible bonds. Prepare the journal entry to record the conversion according to IFRS (book value method). Prepare the journal entry to record the conversion according ASPE (market value method).arrow_forwardRoseBud Motel Ltd. (RM) had 100,000 ordinary shares outstanding during all of 2025, all owned by the owner Johnny Rose. In 2023, RM issued $500,000, 3% non-cumulative preferred shares. Each $100 preferred share is convertible into one ordinary share. RM also had 6,000, $100 cumulative preferred shares outstanding that are each entitled to an annual dividend of $1.60. Each preferred share is convertible into two ordinary shares. RM’s net income for the year ended December 31, 2025, was $400,000. Its income tax rate was 20%. The annual dividend was declared and paid during 2025 on the cumulative preferred shares but not on the non-cumulative shares. Required Calculate RM’s basic EPS for 2025. Are the non-cumulative convertible preferred shares dilutive or antidilutive in nature? The cumulative convertible preferred shares? Support your answer with calculations. Calculate RM’s diluted EPS for 2025.arrow_forwardGive correct answer this general accounting questionarrow_forward
- Hogwarts Inc. (HI) had 80,000 ordinary shares outstanding on January 1, 2025. Transactions throughout 2025 affecting its shareholdings follow. February 1: HI issued 200,000, $10, cumulative 10% preferred shares. March 1: HI issued 40,000 ordinary shares. April l: HI declared and issued an 8% stock dividend on the ordinary shares. July 1: HI repurchased and cancelled 30,000 ordinary shares. October 1: HI declared and issued a 3-for-l stock split on the ordinary shares. December 31: HI declared $99,600 in dividends on the ordinary shares. Net income for the year ended December 31, 2025, was $600,000. Its tax rate was 40%. Required What was the weighted average number of ordinary shares outstanding in 2025? What was the basic EPS in 2025? If the preferred shares issued on February 1, 2025, were non-cumulative, what would basic EPS for 2025 have been?arrow_forwardFinancial Accounting Questionarrow_forwardPlease need answer the general accounting questionarrow_forward
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