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).

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 $ 810,000 Net operating income $ 21,060 Average operating assets $ 100,000 The following questions are to be considered independently. 1. Compute the Springfield club’s return on investment (ROI). (Do not round intermediate calculations. Round your...

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...

Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected...

Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 10,800,000 $ 38,000,000 Net operating income $ 648,000 $ 3,040,000 Average operating assets $ 3,600,000 $ 19,000,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for...

Exercise 10-12 Evaluating New Investments Using Return on Investment (ROI) and Residual Income [LO10-1, LO10-2] Selected...

Exercise 10-12 Evaluating New Investments Using Return on Investment (ROI) and Residual Income [LO10-1, LO10-2] Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $ 5,700,000 $ 9,700,000 $ 8,800,000 Average operating assets $ 1,140,000 $ 4,850,000 $ 1,760,000 Net operating income $ 273,600 $ 853,600 $ 180,400 Minimum required rate of return 17.00 % 17.60 % 14.00 % Required: 1. Compute the return on...

Exercise 11-12 Evaluating New Investments Using Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Selected...

Exercise 11-12 Evaluating New Investments Using Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $ 16,100,000 $ 28,880,000 $ 20,880,000 Average operating assets $ 3,220,000 $ 7,220,000 $ 5,220,000 Net operating income $ 644,000 $ 519,840 $ 626,400 Minimum required rate of return 8.00 % 8.50 % 12.00 % Required: 1. Compute the return on...

Problem 11-15 Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Financial data for Joel de...

Problem 11-15 Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] 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 $ 139,000   Accounts receivable 339,000 488,000   Inventory 567,000 484,000   Plant and equipment, net 791,000 759,000   Investment in Buisson, S.A. 402,000 427,000   Land (undeveloped) 247,000 247,000   Total assets $ 2,479,000 $ 2,544,000 Liabilities and Stockholders' Equity   Accounts payable $ 372,000 $ 346,000   Long-term debt 1,014,000...

Return on Investment, Margin, Turnover Data follow for the Construction Division of D. Jack Inc.: Year...

Return on Investment, Margin, Turnover Data follow for the Construction Division of D. Jack Inc.: Year 1 Sales $141,075,000 Operating income 9,801,000 Average operating assets 354,375,000 Year 2 Sales $178,475,000 Operation Income 8,923,750 Average operating assets 365,062,500 If required, round your answers to two decimal places. Required: 1. Compute the margin (as a percent) and turnover ratios for each year: Year 1 Margin: % Turnover: Year 2 Margin: % Turnover: Compute the ROI (as a percent) for the Construction Division...

Problem 11-15 Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Financial data for Joel de...

Problem 11-15 Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 126,000 $ 133,000 Accounts receivable 334,000 489,000 Inventory 572,000 478,000 Plant and equipment, net 828,000 800,000 Investment in Buisson, S.A. 402,000 430,000 Land (undeveloped) 249,000 255,000 Total assets $ 2,511,000 $ 2,585,000 Liabilities and Stockholders' Equity Accounts payable $ 374,000 $ 346,000 Long-term debt 1,041,000...

Problem 11-15 Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Financial data for Joel de...

Problem 11-15 Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] 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 $ 125,000 Accounts receivable 343,000 473,000 Inventory 567,000 479,000 Plant and equipment, net 820,000 833,000 Investment in Buisson, S.A. 401,000 429,000 Land (undeveloped) 247,000 245,000 Total assets $ 2,518,000 $ 2,584,000 Liabilities and Stockholders' Equity Accounts payable $ 380,000 $ 341,000 Long-term debt 1,041,000...

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...