. Performance Evaluation Methods
Ebel Wares is a division of a major corporation. The following
data...
. Performance Evaluation Methods
Ebel Wares is a division of a major corporation. The following
data are for the latest year of
operations:
Sales................................................................................
$29,120,000
Net operating
income.....................................................
$1,514,240
Average operating
assets................................................
$8,000,000
The company’s minimum required rate of return..........
18%
Required:
a. What is the
division's margin?
b. What is the division's
turnover?
c. What is the
division's return on investment (ROI)?
d. What is the division's
residual income?
C. Performance Evaluation Methods
The Clipper Corporation had net operating income of $380,000...
Question No: 2
The financial statements of Ahmed Company appear below:
Ahmed Company
Comparative Balance Sheet...
Question No: 2
The financial statements of Ahmed Company appear below:
Ahmed Company
Comparative Balance Sheet
December 31,
————————————————————————————————
Assets
2019
2018
Cash
$ 250,000 $ 400,000
Short-term
investments
150,000 600,000
Accounts receivable
(net)
500,000 300,000
Inventory 500,000
700,000
Property, plant and equipment
(net)
2,600,000 3,000,000
Total
assets
$4,000,000 $5,000,000
Liabilities and stockholders' equity
Accounts
payable
$ 200,000 $ 300,000
Short-term notes
payable
300,000 900,000
Bonds payable 900,000 1,600,000
Common stock 1,500,000 1,500,000
Retained
earnings ...
Chapter 10 Question 2:
Selected sales and operating data for three divisions of
different structural engineering...
Chapter 10 Question 2:
Selected sales and operating data for three divisions of
different structural engineering firms are given as follows:
Division A
Division B
Division C
Sales
$
6,800,000
$
10,800,000
$
9,900,000
Average operating assets
$
1,360,000
$
2,700,000
$
1,980,000
Net operating income
$
401,200
$
1,069,200
$
311,850
Minimum required rate of return
23.00
%
39.60
%
20.00
%
Required:
1. Compute the return on investment (ROI) for each division
using the formula stated in terms...
Black Crown Initiate Company reported the following.
Sales $2,150,000 Cost of Goods Sold $670,000 Operating Expenses...
Black Crown Initiate Company reported the following.
Sales $2,150,000 Cost of Goods Sold $670,000 Operating Expenses
$472,000 Interest expense included in Operating Expenses $41,000
Income Taxes 32% of income before tax Stockholders' Equity
(Average) $16,000,000
Round your answers to 2 decimal places.
a) Calculate net income. Net Income = $
b) Calculate the net profit margin. Net Profit Margin = %
c) Calculate the times interest earned. Times Interest Earned
=
d) Calculate the return on equity. Return on Equity...
Selected sales and operating data for three divisions of
different structural engineering firms are given as...
Selected sales and operating data for three divisions of
different structural engineering firms are given as follows:
Division A
Division B
Division C
Sales
$
6,000,000
$
10,000,000
$
9,100,000
Average operating assets
$
1,200,000
$
2,500,000
$
1,820,000
Net operating income
$
306,000
$
910,000
$
213,850
Minimum required rate of return
20.00
%
36.40
%
17.00
%
Required:
1. Compute the return on investment (ROI) for each division
using the formula stated in terms of margin and turnover....
Company
A
B
C
Sales
$360,000
$720,000
$620,000
Net operating income
$49,000
Average operating assets
$152,000...
Company
A
B
C
Sales
$360,000
$720,000
$620,000
Net operating income
$49,000
Average operating assets
$152,000
$145,000
Return on investment (ROI)
23
%
15
%
%
Minimum required rate of
return:
Percentage
13
%
%
10
%
Dollar amount
$46,000
Residual income
$6,000
Company
A
B
C
Sales
$330,000
$800,000
$580,000
Net operating income
$41,000
Average operating assets
$160,000...
Company
A
B
C
Sales
$330,000
$800,000
$580,000
Net operating income
$41,000
Average operating assets
$160,000
$153,000
Return on investment (ROI)
16
%
16
%
%
Minimum required rate of return:
Percentage
14
%
20
%
14
%
Dollar amount
$50,000
Residual income
$6,000
Solano Company has sales of $740,000, cost of goods sold of
$490,000, other operating expenses of...
Solano Company has sales of $740,000, cost of goods sold of
$490,000, other operating expenses of $46,000, average invested
assets of $2,200,000, and a hurdle rate of 10 percent.
Required:
1. Determine Solano’s return on investment (ROI),
investment turnover, profit margin, and residual income.
(Do not round your intermediate calculations. Enter your
ROI and Profit Margin percentage answer to the nearest 2 decimal
places, (i.e., 0.1234 should be entered as 12.34%). Round your
Investment Turnover answer to 4 decimal places.)...