Question

An investment center of Aguilar Corporation shows an operating income of $8,000 on total operating assets...

An investment center of Aguilar Corporation shows an operating income of $8,000 on total operating assets of $120,000. Required Compute the return on investment. (Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45).

Homework Answers

Answer #1
ROI = Net Profit / Total Investment * 100
8000/120000*100
6.67%
__________________________________________END_____________________________________________________
Hi mate,
I would be grateful to you if you can provide a thumbs up and write one beautiful comment. It will improve my rating and let me continue my journey here.
In case of doubt, please comment. I will consider myself fortunate if I can help you.
All the best for your bright future.
Be safe from the corona. Wear a mask before going out and wash hands frequently especially before touching the face
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Zachary Company calculated its return on investment as 10 percent. Sales are now $490,000, and the...
Zachary Company calculated its return on investment as 10 percent. Sales are now $490,000, and the amount of total operating assets is $510,000. Required If expenses are reduced by $51,000 and sales remain unchanged, what return on investment will result? (Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45).) If both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve the same result? (Do not round...
Sorrento Corporation’s balance sheet indicates that the company has $700,000 invested in operating assets. During 2018,...
Sorrento Corporation’s balance sheet indicates that the company has $700,000 invested in operating assets. During 2018, Sorrento earned operating income of $98,000 on $1,400,000 of sales. Required Compute Sorrento’s profit margin for 2018. Compute Sorrento’s turnover for 2018. Compute Sorrento’s return on investment for 2018. Recompute Sorrento’s ROI under each of the following independent assumptions: (1) Sales increase from $1,400,000 to $1,680,000, thereby resulting in an increase in operating income from $98,000 to $110,880. (2) Sales remain constant, but Sorrento...
Adams Corporation’s balance sheet indicates that the company has $510,000 invested in operating assets. During 2018,...
Adams Corporation’s balance sheet indicates that the company has $510,000 invested in operating assets. During 2018, Adams earned operating income of $52,020 on $1,020,000 of sales. Required Compute Adams’s profit margin for 2018. Compute Adams’s turnover for 2018. Compute Adams’s return on investment for 2018. Recompute Adams’s ROI under each of the following independent assumptions: (1) Sales increase from $1,020,000 to $1,224,000, thereby resulting in an increase in operating income from $52,020 to $55,080. (2) Sales remain constant, but Adams...
The retail segment of Nevada Corporation currently reports income of $3,000,000 and total assets of $20,000,000....
The retail segment of Nevada Corporation currently reports income of $3,000,000 and total assets of $20,000,000. The segment is an investment center, and the minimum required return is 10%. The segment manager has identified a new market in which to sell its products. It is estimated that the new market will require an investment of $1,000,000 in assets and will generate additional net income of $120,000. 1. Calculate the current return on investment for the retail segment (without the new...
ROI and Residual Income: Impact of a New Investment The Mustang Division of Detroit Motors had...
ROI and Residual Income: Impact of a New Investment The Mustang Division of Detroit Motors had an operating income of $700,000 and net assets of $4,000,000. Detroit Motors has a target rate of return of 16 percent. (a) Compute the return on investment. (Round your answer to three decimal places.) Answer (b) Compute the residual income. $Answer (c) The Mustang Division has an opportunity to increase operating income by $200,000 with an $950,000 investment in assets. 1. Compute the Mustang...
Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have...
Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year: Sales $ 850,000 Net operating income $ 25,500 Average operating assets $ 100,000 6.value: 10.00 pointsRequired information Required: 1. Compute the Springfield club’s return on investment (ROI). (Round your Turnover answer to 2 decimal places. Round your...
ROI and Residual Income: Impact of a New Investment The Mustang Division of Detroit Motors had...
ROI and Residual Income: Impact of a New Investment The Mustang Division of Detroit Motors had an operating income of $700,000 and net assets of $4,000,000. Detroit Motors has a target rate of return of 16 percent. (a) Compute the return on investment. (Round your answer to three decimal places.) (b) Compute the residual income. (c) The Mustang Division has an opportunity to increase operating income by $200,000 with an $950,000 investment in assets. 1. Compute the Mustang Division's return...
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.)...
Selected financial data from the June 30 year-end statements of Safford Company are given below: Total...
Selected financial data from the June 30 year-end statements of Safford Company are given below: Total assets $ 5,800,000 Long-term debt (11% interest rate) $ 670,000 Total stockholders’ equity $ 2,200,000 Interest paid on long-term debt $ 73,700 Net income $ 410,000 Total assets at the beginning of the year were $5,600,000; total stockholders’ equity was $2,000,000. The company’s tax rate is 40%. Required: 1. Compute the return on total assets. (Round your percentage answer to 1 decimal place (i.e.,...
Selected financial data from the June 30 year-end statements of Safford Company are given below: Total...
Selected financial data from the June 30 year-end statements of Safford Company are given below: Total assets $ 5,900,000 Long-term debt (11% interest rate) $ 710,000 Total stockholders’ equity $ 2,500,000 Interest paid on long-term debt $ 78,100 Net income $ 390,000 Total assets at the beginning of the year were $5,700,000; total stockholders’ equity was $2,300,000. The company’s tax rate is 35%. Required: 1. Compute the return on total assets. (Round your percentage answer to 1 decimal place (i.e.,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT