The formula for Residual income Data concerning the most recent year appears below: Sales $17,570,000 Net operating income $860,930 Average operating assets $4,950,000 The division's margin is: a. He pays$4,424 in state taxes annually based on a state tax rate of 4%. -Sales 50,000,000 -Operating Income 3,200,000 -Average Operating Assets 10,000,000 The com, The Casket Division of Saal Corporation had average operating assets of $1,110,000 and a net operating income of $295,200 in January. Data concerning the most recent year appears below: Sales $18,080,000 Net operating income $940,160 Average operating assets $4,810,000 The division's turnover is closest to: A. The compan, Cabal Products is a division of a major corporation. Last year the division had total sales of $24,886,200, net operating income of $4,106,223, and average operating assets of $8,436,000. . Investment Turnover = Sales / Invested Assets what is the minimum acceptable operating income. Data concerning the most recent year appears below: Sales $17,860,000 Net operating income $1,125,180 Average operating assets $4,970,000 The divi, Iba Industries is a division of a major corporation. Comment on the performance of each of the divisions. What is, Gilde Industries is a division of a major corporation. A. The following data are for the latest year of operations: Sales 5,820,000 dollars, Net operating income 436,500 dollars, Average operating assets 2, The Consumer Products Division of Mickolick Corporation had average operating assets of $490,000 and net operating income of $41,000 in August. b) Net operating income less the minimum required return on average operating assets. Last year the division had total sales of $20,070,000, net operating income of $1,063,710, and average operating assets of $4,415,400. What is the Company's asset turnover? Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested assets of 180,000, and sales of 720,000. ): Almendarez Corporation is considering the purchase of a machine that would cost $220,000 and would last for 9 years. following average times were recorded per order. Understand what is residual income. We all laughed at the joke about_ honest man, even thou Aide Industries is a division of a major corporation. =. Turnover = Net sales / average operating assets, A: Break even point means a point where firm is neither earning profit nor incurring any loss. Each division is evaluated as a profit center. The company's minimum required rate of return is 12%. The following data are for the latest year of operations: Sales $10,000,000 Net operating income $950,000 Average operating assets $4,000,000 The compa, I) The following information is available for our company for the current year: operating income, $45,000; average total assets, $400,000; net sales, $900,000; and required rate of return, 12%. = NET OPERATING INCOME - (AVERAGE OPERATING ASSETS X MINIMUM REQUIRED RATE OF, A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for, A: Return on investment (ROI) is a performance statistic used to evaluate the efficiency or, A: ROI means Return on investment by the company which says that how much net income is earned on, A: Return on investment = Net operating income / Average operating assets, A: Return on investment represents the profit earned on an investment made. Last year the division had total sales of $36,160,000, net operating income of $2,892,800, and average operating assets of $8,000,000. Xenold, Inc., has two sources of financing: bonds paying 5 percent interest, which account for 25 percent of total investment, and equity accounting for the remaining 75 percent of total investment. 2. $3,058,960; $4,248,960 $(3,277,840) Calculate EVA for each division and for Xenold, Inc. 4. was not in equilibrium for a product or service. The minimum required rate of return for performance eval, Fanfa Industries is a division of a major corporation. True or False. One division makes neoprene wetsuits. If TARDIS produces at capacity, the per unit. Compute the ROI and the margin and turnover ratios for each year for the Houseware Division. a. $, Coolbrook Company has the following information available for the past year: River division Stream division Sales revenue $1,208,000 $1,819,000 Cost of goods sold and operating expenses 892,000 1,296,000 Net operating income $316,000 $523,000 Average inve, Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $1,209,000 $1,805,000 Cost of goods sold and operating expenses 887,000 1,300,000 Net operating income $322,000 $505,000 Average inve, Starship Corporation uses the residual income to evaluate the performance of its divisions. True or False, A shorter payback period does not necessarily mean that one investment is more desirable than another. Last year the division had total sales of $24,040,500, net operating income of $3,726,278, and average operating assets of $7,755,000. If expenses could be reduced by 3,450,000 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the Consumer Products Division? . b. What is the financial advantage (disadvantage) for the company from processing one batch of sugar beets into the end products industrial fiber and refined sugar rather than not processing that batch at all?
Share this article