Question

Following is the financial information of Omega Investor Inc. for the last fiscal year: Average operating...

Following is the financial information of Omega Investor Inc. for the last fiscal year:

Average operating assets $18,000,000
Operating income $2,880,000
Minimum required rate of return 10%


Calculate the residual return of Omega Investor Inc.

a.3%

b.5%

c.6%

d.4%

Homework Answers

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
Forchen, Inc., provided the following information for two of its divisions for last year:            Small...
Forchen, Inc., provided the following information for two of its divisions for last year:            Small Appliances Division Cleaning Products Division Sales $34,630,000      $31,340,000      Operating income 2,346,100      1,252,900      Operating assets, January 1 6,399,000      5,770,000      Operating assets, December 31 7,590,000      6,380,000      Forchen, Inc., requires an 9 percent minimum rate of return. Required: 1. Calculate residual income for the Small Appliances Division. $ 2. Calculate residual income for the Cleaning Products Division. $ 3. What if the minimum required rate of return...
Calculating Residual Income Forchen, Inc., provided the following information for two of its divisions for last...
Calculating Residual Income Forchen, Inc., provided the following information for two of its divisions for last year:            Small Appliances Division Cleaning Products Division Sales $34,610,000      $31,300,000      Operating income 2,619,700      1,252,300      Operating assets, January 1 6,395,000      5,740,000      Operating assets, December 31 7,520,000      7,000,000      Forchen, Inc., requires an 7 percent minimum rate of return. Required: 1. Calculate residual income for the Small Appliances Division. $ 2. Calculate residual income for the Cleaning Products Division. $ 3. What if the minimum required...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 135,000 $ 131,000 Accounts receivable 336,000 489,000 Inventory 577,000 489,000 Plant and equipment, net 842,000 821,000 Investment in Buisson, S.A. 407,000 427,000 Land (undeveloped) 246,000 255,000 Total assets $ 2,543,000 $ 2,612,000 Liabilities and Stockholders' Equity Accounts payable $ 375,000 $ 330,000 Long-term debt 976,000 976,000 Stockholders' equity 1,192,000 1,306,000 Total liabilities and stockholders' equity $...
The following information is available for our company for the current year: operating income, $75,000; average...
The following information is available for our company for the current year: operating income, $75,000; average total assets, $500,000; net sales, $750,000; and required rate of return, 12%. Calculate the profit margin to two decimal places. A) 6.67% B) 10.00% C) 15.00% D) 16.67% The following information is available for our company for the current year: operating income, $75,000; average total assets, $500,000; net sales, $750,000; and required rate of return, 12%. Calculate the asset turnover to two decimal places....
Calculating Residual Income East Mullett Manufacturing earned operating income last year as shown in the following...
Calculating Residual Income East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales $531,250 Cost of goods sold 280,000    Gross margin $251,250 Selling and administrative expense 183,200    Operating income $68,050 Less: Income taxes (@ 40%) 27,220    Net income $40,830 At the beginning of the year, the value of operating assets was $390,000. At the end of the year, the value of operating assets was $460,000. East Mullett requires a minimum rate of return of...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 127,000 $ 128,000 Accounts receivable 333,000 482,000 Inventory 578,000 482,000 Plant and equipment, net 892,000 878,000 Investment in Buisson, S.A. 395,000 426,000 Land (undeveloped) 251,000 247,000 Total assets $ 2,576,000 $ 2,643,000 Liabilities and Stockholders' Equity Accounts payable $ 371,000 $ 343,000 Long-term debt 1,020,000 1,020,000 Stockholders' equity 1,185,000 1,280,000 Total liabilities and stockholders' equity $...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 133,000 $ 131,000 Accounts receivable 342,000 480,000 Inventory 575,000 471,000 Plant and equipment, net 790,000 798,000 Investment in Buisson, S.A. 391,000 435,000 Land (undeveloped) 253,000 255,000 Total assets $ 2,484,000 $ 2,570,000 Liabilities and Stockholders' Equity Accounts payable $ 389,000 $ 334,000 Long-term debt 951,000 951,000 Stockholders' equity 1,144,000 1,285,000 Total liabilities and stockholders' equity $...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 137,000 $ 139,000 Accounts receivable 345,000 489,000 Inventory 572,000 481,000 Plant and equipment, net 816,000 801,000 Investment in Buisson, S.A. 409,000 431,000 Land (undeveloped) 254,000 249,000 Total assets $ 2,533,000 $ 2,590,000 Liabilities and Stockholders' Equity Accounts payable $ 375,000 $ 338,000 Long-term debt 992,000 992,000 Stockholders' equity 1,166,000 1,260,000 Total liabilities and stockholders' equity $...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 132,000 $ 138,000 Accounts receivable 333,000 477,000 Inventory 562,000 479,000 Plant and equipment, net 873,000 846,000 Investment in Buisson, S.A. 410,000 430,000 Land (undeveloped) 251,000 255,000 Total assets $ 2,561,000 $ 2,625,000 Liabilities and Stockholders' Equity Accounts payable $ 383,000 $ 340,000 Long-term debt 989,000 989,000 Stockholders' equity 1,189,000 1,296,000 Total liabilities and stockholders' equity $...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 140,000 $ 128,000 Accounts receivable 339,000 489,000 Inventory 561,000 474,000 Plant and equipment, net 870,000 859,000 Investment in Buisson, S.A. 393,000 432,000 Land (undeveloped) 254,000 253,000 Total assets $ 2,557,000 $ 2,635,000 Liabilities and Stockholders' Equity Accounts payable $ 389,000 $ 332,000 Long-term debt 1,018,000 1,018,000 Stockholders' equity 1,150,000 1,285,000 Total liabilities and stockholders' equity $...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT