Question

Trails and Paths, Inc. had average operating assets of $6,000,000 and sales of $3,000,000 in 20XX....

Trails and Paths, Inc. had average operating assets of $6,000,000 and sales of $3,000,000 in 20XX. If income was $600,000, then ROI was

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Return on Investment (ROI) = 10%

Data’s Given

Average operating assets                   = $6,000,000

Net Income                             = $600,000

Return on Investment (ROI)  

= [ Net Income / Average Operating Assets ] x 100

= [ $600,000 / $6,000,000 ] x 100

= 10%

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Young Inc. reported a net operating income of $6,000,000 and average operating assets of $25,000,000 for...
Young Inc. reported a net operating income of $6,000,000 and average operating assets of $25,000,000 for last year. At the beginning of current year, Young has a $10,000,000 investment opportunity that involves sales of $11,000,000, fixed expenses of $3,630,000, and a contribution margin ratio of 40%. If Young takes on this investment opportunity and otherwise performs exactly the same as last year, what is the combined ROI for the entire company? 17.1% 2.2% 19.3% 22.6%
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
A company has the following information Operating income $600,000 Sales $900,000 Asset turnover 55% Assets invested...
A company has the following information Operating income $600,000 Sales $900,000 Asset turnover 55% Assets invested $50,000 Compute ROI A. 55% B. 18% C. 12% D. 22%
O’Brien Vineyards reports the following: Net Operating Income 205,000 Average Operating Assets 1,985,000 Sales 2,575,000 Operating...
O’Brien Vineyards reports the following: Net Operating Income 205,000 Average Operating Assets 1,985,000 Sales 2,575,000 Operating Expenses 2,320,000 Minimum Required Rate of Return is 12.25% 1. What is O’Brien Vineyard’s ROI? 2. What is O’Brien Vineyard’s Residual Income? 3. If Vineyard manager, Brant O’Brien, is compensated based on ROI, will he want to make an investment of $400,000 that would generate additional net operating income of $75,000 per year? Why or why not. Please show your calculations. 4. If Vineyard...
O’Brien Vineyards reports the following: Net Operating Income 205,000 Average Operating Assets 1,985,000 Sales 2,575,000 Operating...
O’Brien Vineyards reports the following: Net Operating Income 205,000 Average Operating Assets 1,985,000 Sales 2,575,000 Operating Expenses 2,320,000 Minimum Required Rate of Return is 12.25% 1. What is O’Brien Vineyard’s ROI? 2. What is O’Brien Vineyard’s Residual Income? 3. If Vineyard manager, Brant O’Brien, is compensated based on ROI, will he want to make an investment of $400,000 that would generate additional net operating income of $75,000 per year? Why or why not. Please show your calculations. 4. If Vineyard...
Titus Inc. Segmented Income Statements For the Current Fiscal Year Ended December 31 Southeast Division Northwest...
Titus Inc. Segmented Income Statements For the Current Fiscal Year Ended December 31 Southeast Division Northwest Division Sales $4,400,000 $2,600,000 Cost of goods sold   2,400,000      1,500,000 Gross margin 2,000,000 1,100,000 Allocated overhead (from corporate) 600,000 370,000 Selling and administrative expenses      430,000      340,000 Operating income 970,000 390,000 Income tax expense (35%)      339,500        136,500 Net income 630,500 $   253,500 Required: (1)       Using the segmented income statements presented, determine the profit margin ratio for each division.           (2)       Assume the Southeast division had average operating assets totaling...
The Research Division of Triumph Company had operating income of $9,800,000 and operating assets of $46,600,000...
The Research Division of Triumph Company had operating income of $9,800,000 and operating assets of $46,600,000 during the current year. The Research Division has developed a potential new product that would require $10,300,000 in operating assets and would be expected to provide $3,200,000 in operating income each year. Triumph has set a target return on investment (ROI) of 22% for each of its divisions. Assuming that the new product is put into production, calculate the division's ROI
The South Division of Wiig Company reported the following data for the current year. Sales $3,000,000...
The South Division of Wiig Company reported the following data for the current year. Sales $3,000,000 Variable costs 2,010,000 Controllable fixed costs 605,000 Average operating assets 5,000,000 Top management is unhappy with the investment center’s return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action. 1. Increase sales by $300,000 with no change in...
1. Pac, Capital is $1,000 on Jan 1, 20xx. The company had credit sales of $90,000;...
1. Pac, Capital is $1,000 on Jan 1, 20xx. The company had credit sales of $90,000; cash collections of accounts receivable of $80,000; cost of goods sold of $30,000; operating expenses of 20,000; a gain of $10,000; owner withdrawals of $4,000 and owner investments of $1,000 during the year. Determine the December 31, 20xx balance of Pac, Capital.    a. $74,000                 c. $128,000    b. $48,000                 d. $ 55,000 2. REM, Inc. had assets of $44 and liabilities of $18...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT