Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 15, Problem 16E
To determine
Compute the missing figures.
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Hi expart Provide correct answer with correct calculation on these accounting question
1.
Chapter 11: Applying Excel
Data
$ 72,000,000
$ 3,600,000
$ 18,000,000
24%
4
Sales
Net operating income
6.
Average operating assets
7
Minumum required rate of return
If your formulas are correct, you should get the correct answers to the following questions.
a. What is the ROI?
ROI
%
b. What is the residual income? (Nagative amount should be indicated by a minus sign.)
Residual income
c. Why is the residual income negative?
2.
5.
Chapter 15 Solutions
Survey Of Accounting
Ch. 15 - 1. Pam Kelly says she has no faith in budgets. Her...Ch. 15 - 7. What is a responsibility center?Ch. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - Prob. 5QCh. 15 - 3. When are sales and cost variances favorable and...Ch. 15 - 4. Joan Mason, the marketing manager for a large...Ch. 15 - Prob. 8QCh. 15 - Prob. 9QCh. 15 - Prob. 10Q
Ch. 15 - Prob. 11QCh. 15 - 9. Minnie Divers, the manager of the marketing...Ch. 15 - 6. How do responsibility reports promote the...Ch. 15 - Prob. 14QCh. 15 - Prob. 15QCh. 15 - Prob. 16QCh. 15 - 12. How can a residual income approach to...Ch. 15 - Prob. 18QCh. 15 - Exercise 9-6A Evaluating a profit center Helen...Ch. 15 - Prob. 2ECh. 15 - Prob. 3ECh. 15 - Prob. 4ECh. 15 - Exercise 8-3A Determining amount and type...Ch. 15 - Prob. 6ECh. 15 - Exercise 8-4A Determining sales and variable cost...Ch. 15 - Exercise 8-5A Determining flexible budget...Ch. 15 - Exercise 8-9A Responsibility for the fixed cost...Ch. 15 - Prob. 10ECh. 15 - Exercise 8-7A Evaluating a decision to increase...Ch. 15 - Prob. 12ECh. 15 - Prob. 13ECh. 15 - Exercise 9-9A Residual income Climax Corporation...Ch. 15 - Residual income Gletchen Cough Drops operates two...Ch. 15 - Prob. 16ECh. 15 - Prob. 17ECh. 15 - Prob. 18PCh. 15 - Prob. 19PCh. 15 - Prob. 20PCh. 15 - Prob. 21PCh. 15 - Problem 9-20A Return on investment Sorrento...Ch. 15 - Problem 9-21A Comparing return on investment and...Ch. 15 - Comparing return on investment and residual income...Ch. 15 - ATC 8-1 Business Applications Case Static versus...Ch. 15 - Prob. 2ATCCh. 15 - Prob. 3ATCCh. 15 - ATC 9-1 Business Applications Case Analyzing...Ch. 15 - Prob. 5ATC
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- Requirement 2: Revise the data in your worksheet as follows: A 1 Chapter 11: Applying Excel 2 3 Data 4 Sales 5 6 7 Net operating income Average operating assets Minumum required rate of return ROI If your formulas are correct, you should get the correct answers to the following questions. a. What is the ROI? $ 24,000,000 $ 3,360,000 $ 6,000,000 24% % Residual income b. What is the residual income? (Negative amount should be indicated by a minus sign.) c. Why is the residual income positive? The ROI exceeds the minimum required rate of returnarrow_forwardA 0 4 5 Sales 6 Net operating income 7 Average operating assets 8 Minimum required rate of return 9 10 Required: 11 Determine the ROI and Residual Income for each. 12 13 Compute the ROI for Segment A, B and C. 14 15 16 Margin 17 Turnover 18 ROI 19 20 Compute the residual income for Segment A, B and C. 21 22 23 Net operating income 24 Minimum required return on average operating assets 25 Residual Income 26 B C D E Segment A Segment B Segment C $ 5,900,000 $ 32,000 $ 11,900 $ 1,115,000 $ 10,000 $ 550 $ 6,600,000 $ 56,000 $ 9,000 17% 12% 17% Segment A Segment B Segment C Segment A Segment B Segment Carrow_forwardData Sales Net operating income Average operating assets Minimum required rate of return Enter a formula into each of the cells marked with a ? below Review Problem: Return on Investment (ROI) and Residual Income Compute the ROI Margin Turnover ROI Compute the residual income Average operating assets $25,000,000 $3,000,000 $10,000,000 25% Net operating income Minimum required return Residual income ? ? ? ? ? ? ?arrow_forward
- Chapter 10: Applying Excel: Exercise (Part 2 of 2) Requirement 2: Revise the data in your worksheet as follows: A 1 Chapter 10: Applying Excel 2 3 Data 4 Sales 5 6 7 Net operating income ROI Average operating assets Minumum required rate of return If your formulas are correct, you should get the correct answers to the following questions. a. What is the ROI? Residual income B % c. Why is the residual income positive? $ 64,000,000 $ 7,680,000 $ 16,000,000 25% b. What is the residual income? (Negative amount should be indicated by a minus sign.)arrow_forwardExercise 11-9 (Algo) Return on Investment (ROI) and Residual Income Relations [LO11-1, LO11-2] Supply the missing data for three service companies shown in the table below. Note: Loss amounts should be Indicated by a minus sign. Round your percentage answers to nearest whole percent. Sales Net operating income Average operating assets Return on investment (RO Minimum required rate of return. Percentage Dollar amount Residual income A Company B C S 9,240,000 S 7.400.000 S 306,000 $ 4,880.000 S 3,080,000 S 1,944.000 15 % 18 % 96 13 % 96 S 340,000 18 96 $ 97.200arrow_forward6arrow_forward
- QUESTION 26 Top management is trying to determine which would be the best choice of the following investment opportunities: Data of investment choices: 1 Sales $10,000,000 Operating income 200,000 Average operating assets 2,000,000 Required: Compute the Residual Income assuming a minimum required rate of return of 8%. $40,000 $0 $50,000 $(40,000)arrow_forwardSegment profitability analysis The marketing segment sales for Caterpillar, Inc., for a year follow: In addition assume the following information: A. Use the sales information and the additional assumed information to prepare a contribution margin by segment report. Round to two decimal places. In addition, calculate the contribution margin ratio for each segment as a percentage, rounded to one decimal place. B. Prepare a table showing the manufacturing margin, dealer commissions, and variable promotion expenses as a percent of sales for each segment. (Round whole percents to one decimal place.) C. Use the information in (A) and (B) to interpret the segment performance.arrow_forwardchpater 6 question 6 Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Total Sales $ ? $ 200,000 $ ? Variable expenses 120,000 140,000 260,000 Contribution margin ? ? ? Traceable fixed expenses 100,000 ? ? Segment margin $ ? $ (20,000 ) ? Common fixed expenses 50,000 Net operating income $ 10,000 What is the company’s total sales? Multiple Choice $500,000 $600,000 $480,000 $460,000arrow_forward
- please dont provide answer in image format thank youarrow_forwardQUESTION 25 Top management is trying to determine which would be the best choice of the following: Data of investment choices: 1 Sales $10,000,000 Operating income 200,000 Average operating assets 2,000,000 Required: Compute the Return on Investment 9% 12% 8% 10%arrow_forwardQUESTION 30 Management is trying to determine which would be the best choice of the following investment opportunities: Data of investment choices: 3 Sales $6,000,000 Operating income 300,000 Average operating assets 3,000,000 Required: Compute the Residual Income assuming a minimum required rate of return of 8%. $66,000 $75,000 $60,000 $70,000arrow_forward
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