Hansaben Indl Systems Inc., headquartered in Bengaluru, India, provides specialized information technology (IT) services and consists of threedivisions: (1) insurance, (2) retail and (3) hospitality. For 2023, it recorded the following data:Sales revenuesVariable costs (% of sales)Traceable fixed costsCommon fixed costsInsuranceRetail$ 4,034,000 $ 5,549,0002,064,0002,678,00028%InsuranceIndi Systems Inc.,Segment Performance ReportProfit Centres42%%RetailHospitality$ 1,993,000Required:1. Prepare a segment performance report showing the segment margin in dollars and percentages for all three divisions. Use Exhibit12-3 as a guide. (Round "Percentage nswers to 2 decimal places.)%42%735,000HospitalityTotal$ 11,576,000%5,477,0001,190,000Total Company

Segment margin means the profit margin for each department of an organization. It is determined to…

Indl Systems Inc., headquartered in Bengaluru, India, provides specialized information technology (IT) services and consists of three divisions: (1) Insurance, (2) retail and (3) hospitality. For 2023, it recorded the following data: Sales revenues Variable costs (% of sales) Traceable fixed costs Common fixed costs Insurance $ 4,034,000 2,064,000 28% Retail $ 5,549,000 42% 2,678,000 Insurance Indi Systems Inc., Segment Performance Report Profit Centres Hospitality $ 1,993,000 Retail 42% 735,000 Required: 1. Prepare a segment performance report showing the segment margin in dollars and percentages for all three divisions. Use Exhibit 12-3 as a guide. (Round "Percentage" answers to 2 decimal places.) Hospitality Total $ 11,576,000 % 5,477,000 1,190,000 Total Company

Indl Systems Inc., headquartered in Bengaluru, India, provides specialized information technology (IT) services and consists of three divisions: (1) Insurance, (2) retail and (3) hospitality. For 2023, it recorded the following data: Sales revenues Variable costs (% of sales) Traceable fixed costs Common fixed costs Insurance $ 4,034,000 2,064,000 28% Retail $ 5,549,000 42% 2,678,000 Insurance Indi Systems Inc., Segment Performance Report Profit Centres Hospitality $ 1,993,000 Retail 42% 735,000 Required: 1. Prepare a segment performance report showing the segment margin in dollars and percentages for all three divisions. Use Exhibit 12-3 as a guide. (Round "Percentage" answers to 2 decimal places.) Hospitality Total $ 11,576,000 % 5,477,000 1,190,000 Total Company

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EB: The cost data for BC Billing Solutions for the year 2020 is as follows: Using the high-low method,...

See similar textbooks

Similar questions

You are a financial analyst working for a financial services provider. The financial information provided below is for two companies operating in the same industry: Statements of comprehensive income for year ended 31 December 2020 Tiger (Pty) Ltd Lion (Pty) Ltd Sales revenue 8 200 000 6 300 000 Less: variable costs 6 430 000 4 420 000 Cost of sales Selling expenses 6 230 000 200 000 4 160 000 260 000 Contribution 1 770 000 1 880 000 Less: fixed costs 840 000 690 000 Administration costs Production costs Selling costs 180 000 600 000 60 000 140 000 510 000 40 000 Earnings before interest and tax expense 930 000 1 190 000 Less: Finance costs 100 000 90 000 Profit before tax 830 000 1 100 000 Less: Income tax expense 249 000 330 000 Total comprehensive income for the year 581 000 770 000 Statements of changes in equity for year ended 31 December 2020 Tiger (Pty) Ltd…
Using the Microsoft 10K for the Fiscal Year ended June 30, 2018 to answer questions: 1. Interpret the results of 2018 "above the line" compared to 2017 "above the line" and then 2017 "below the line" and 2017 "below the line". 2. What is the revenue and cost streams of MSFT using the 10K. How are the costs allocated between the product and service streams? 3. What are the revenue recognition policy of MSFT?4. What are some examples of the revenue recognition for each area as mentioned in the report?5. What is the EBIT and EBITDA for MSFT for 2018 and 2017? How did you calculate this? 6. Using the MSFT financial statements, what is the variance for the balances listed below). The answer must include: % change from 2017 to 2018$ change from 2017 to 2018please state whether it is a favorable or unfavorable variance from 2017 to 2018 Cost of services Selling, general, administration and other Gross Profit of services Gross Profit of products 7. In the financial statement, what is the…
An analyst is evaluating the profi tability of Daimler AG (Xetra: DAI) over a recentfi ve-year period. He gathers the following revenue data and calculates the followingprofi tability ratios from information in Daimler’s annual reports:2009 2008 2007 2006 2005Revenues (€ millions) 78,924 98,469 101,569 99,222 95,209Gross profi t margin 16.92% 21.89% 23.62% 20.60% 19.48%Operating profi t (EBIT) margin a–1.92% 2.77% 8.58% 5.03% 3.02%Pretax margin –2.91% 2.84% 9.04% 4.94% 2.55%Net profi t margin –3.35% 1.73% 4.78% 3.19% 2.37%aEBIT (Earnings before interest and taxes) is the operating profi t metric used by Daimler.Daimler’s revenue declined from 2007 to 2008 and from 2008 to 2009. Further,Daimler’s 2009 revenues were the lowest of the fi ve years. Management’s discussion ofthe decline in revenue and EBIT in the 2009 Annual Report notes the following:Th e main reason for the decline [in EBIT] was a signifi cant drop in revenuedue to markedly lower unit sales in all vehicle segments as a…
You are considering two possible companies for investment purposes. The following data is available for each company. Company A Net credit sales, Dec. 31, 2019 $540,000 Net Accounts receivable, Dec 31, 2018 $120,000 Net accounts receivable, Dec 31, 2019 $180,000 Number of days sales in receivables ratio, 2018 103 days Net Income, Dec. 31, 2018 $250,000 Company B Net credit sales, Dec. 31, 2019 $620,000 Net Accounts receivable, Dec 31, 2018 $145,000 Net accounts receivable, Dec 31, 2019 $175,000 Number of days sales in receivables ratio, 2018 110 days Net Income, Dec. 31, 2018 $350,000 Additional Information: Company A: Bad debt estimation percentage using the income statement method is 6%, and the balance sheet…
Assume that you are purchasing an investment and have decided to invest in a company in the digital phone business. You have narrowed the choice to Digitized Corp. and Very Network, Inc. and have assembled the following data. LOADING... (Click to view the income statement data.) Data Table Selected income statement data for the current year: Digitized Very Network Net Sales Revenue (all on credit) $418,290 $494,940 Cost of Goods Sold 210,000 256,000 Interest Expense 0 15,000 Net Income 62,000 70,000 (Click to view the balance sheet and market price data.) Data Table Selected balance sheet and market price data at the end of the current year: Digitized Very Network Current Assets: Cash $24,000 $21,000 Short-term Investments 42,000 19,000 Accounts Receivables, Net 36,000 46,000 Merchandise Inventory 67,000 98,000 Prepaid Expenses 22,000 18,000 Total…
The majority of company valuations today are based on multiples of revenues or EBITDA. Using the following data please state the company valuation for each of the scenarios below. [SaaS Revenue 4x multiple: Tech Enabled Service Revenue 1.5x multiple: Maintenance Revenue 2x multiple: Traditional Service Revenue 1x multiple: Positive EBITDA 15x multiple.] Company A has a mix of Tech Enabled and Traditional Service. The Tech Enabled Services total $4,000,000.00 annually and the Traditional Service totals $1,500,000.00. If the same company in “a” above had annual EBITDA of $750,000.00, which would be the better valuation? Company B has high growth SaaS revenue of $10,000,000.00 and Maintenance Revenue of $4,500,000.00. It also has annual operating EBITDA of -$350,000.00. Based on these facts would an offer of $31,000,000.00 for the company be acceptable? Please explain your answer. Company C is a pure Traditional Services company with $3,500,000.00 in annual revenue but…
Consider the following data (in millions) from Trident Financial Incorporated, which has two main divisions, mortgage loans and consumer loans: Mortgage Consumer Loans Loans Average total assets Operating income Return on investment (ROI) $ 2,500 $ 530 $ 17,750 $ 2,485 21.20% 14.00% Required: 1. Based on ROI, which division is more successful? Mortgage loans Consumer loans 2. Trident uses residual income (RI) as a measure of the financial performance of its divisions. What is the RI for each division if the minimum desired rate of return is (a) 10%, (b) 15%, and (c) 20%? (Leave no cells blank. Negative amounts should be indicated by a minus sign. Enter your answers in millions.) Residual Income (RI) Mortgage Loans Consumer Loans (а) 10% |(b) 15% (c) 20%
Following are 2017 and 2018 revenue data for Honeywell International's four segments. Use these data to forecast its 2019 revenue. Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places. Honeywell International Segment Sales and Business-Unit Sales by Segment $ millions 2018 2017 Aerospace sales Commercial aviation original equipment Commercial aviation aftermarket Defense and space Transportation systems Total aerospace sales Honeywell building technologies sales Homes Buildings Total Honeywell building technologies sales Performance materials and technologies sales UOP Russell LLP Process solutions Advanced materials Total performance materials and technologies sales $3,591 $2,475 5,373 5,861 5,423 4,053 2,622 3,906 $17,009 $16,295 $4,686 $4,482 5,370 6,053 $10,056 $10,535 $3,603 $2,753 4,981 5,553 3,606 2,791 $12,190 $11,097 Safety and productivity solutions sales Safety…
Q1. Below is the projected financial information provided by Altaf Hussain Manufacturing LLC. The company wants to introduce two new products into the market, Zandu and Eundu. The company provides the following forecasted information of sales and costs. Sales in units Product/Year Year 1 Year 2 Year 3 Year 4 Zandu 60,000 110,000 100,000 30,000 Eundu 75,000 137,000 125,000 37,500 Product Zandu Eundu Direct material costs 14 11 Selling price 31 23 Selling price inflation (per year). 3% Direct material cost inflation (per year) 3% Advertisement cost (First Year) 500,000 Advertisement cost (2nd and 3rd Year) 200,000 Investment 1,000,000 Machinery 1,000,000 Fixed costs 1,000,000 Таx 25% Residual value 1.2million Required: Calculate NPV and IRR of this proposal project using MS Excel. Hint: Calculate expected revenue 2. Expected costs 3. Expected cashflows 1. to calculate NPV and IRR MTEES
Prepare a vertical analysis scheduleHere is the operating data for Yalis Cleaning, Inc.:2021 2020Service revenue $523,000 $476,000Operating expenses 385,500 319,800Income tax expense 34,375 39,050Net income $103,125 $117,150PurposeThe purpose of this problem is to demonstrate an understanding of preparing a vertical analysis schedule.InstructionsAfter analyzing the transactions, prepare a vertical analysis schedule for the company for 2021 and 2020 using service revenueas the base amount. Round percentages to two decimal places.GuidanceFor formatting guidance, see the vertical analysis examples that are provided in Chapter 13 of the textbook.
Required information [The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. Investment Center Electronics Income $ 3,114,000 2,261,000 Average Assets $ 17,300,000 13,300,000 Sporting goods Sales $ 41,520,000 18,088,000 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated the most residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? The target return is 11%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment for each center. Using return on investment, which center is most efficient…
A financial analyst for Simon Manufacturing prepared the following report: Customers Customer-Level Operating Income Customer Revenue A $5041.00 $26,250 B $4202.00 $30,000 C $3368.00 $15,000 D $1069.50 $7,300 E $984.80 $5,100 F $844.80 $4,400 G $336.60 $1,800 H $252.00 $4,500 I ($168.00) $2,400 J ($676.00) $2,600 What is the cumulative customer-level operating income as a percentage of customer level operating income for the top 4 most profitable (operating income) customers? 1) 17.4% 2) 89.7% 3) 85.0% 4) 79.1%