Return on investment is often expressed as follows: Controllable margin Controllable margin Sales ROI-> Average operating assets Sales Average operating assets (b1) Comparative data on three companies operating in the same industry follow. The minimum required ROI is 10% for all three companies Determine the missing amounts. (Round asset turnover of Company B and return on investment of Company C to 1 decimal place, e.g. 15.2 or 15.2% and all other answers to 0 decimal places, e.g. 152. Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).) Company A Company B Company C Sales $1,580,000 $725,800 (a) $ Net operating income $173,800 $152,418 (b) $ Average operating assets $790,000 (c) $ Profit margin (d) % (e) % Assets turnover (1) (®) Return on investment (h) % 2.1 % 010 Residual income 1 $ (k) $ 00 $ $5,387,000 0.6 % 5 %

Return on investment is often expressed as follows: Controllable margin Controllable margin Sales ROI-> Average operating assets Sales Average operating assets (b1) Comparative data on three companies operating in the same industry follow. The minimum required ROI is 10% for all three companies Determine the missing amounts. (Round asset turnover of Company B and return on investment of Company C to 1 decimal place, e.g. 15.2 or 15.2% and all other answers to 0 decimal places, e.g. 152. Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).) Company A Company B Company C Sales $1,580,000 $725,800 (a) $ Net operating income $173,800 $152,418 (b) $ Average operating assets $790,000 (c) $ Profit margin (d) % (e) % Assets turnover (1) (®) Return on investment (h) % 2.1 % 010 Residual income 1 $ (k) $ 00 $ $5,387,000 0.6 % 5 %

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.16E

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Return on investment is often expressed as follows: ROI = Controllable margin Average operating assets Controllable margin Sales Sales Average operating assets (b1) Comparative data on three companies operating in the same industry follow. The minimum required ROI is 10% for all three companies. Determine the missing amounts. (Round asset turnover of Company B and return on investment of Company C to 1 decimal place, e.g. 15.2 or 15.2% and all other answers to O decimal places. e.g. 152. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Sales Net operating income Average operating assets Profit margin Assets turnover Company A Company B $1,382,000 $700,400 $165.840 $133,076 (b) $ $691.000 (c) $ (d) % (e) % Return on investment (h) Residual income S k) $ () $ Company C $4,845,000 0.5 %
Return on investment is often expressed as follows: ROI = (b1) Sales Net operating income Controllable margin Average operating assets Average operating assets Profit margin Assets turnover Comparative data on three companies operating in the same industry follow. The minimum required ROI is 10% for all three companies. Determine the missing amounts. (Round asset turnover of Company B and return on investment of Company C to 1 decimal place, e.g. 15.2 or 15.2% and all other answers to O decimal places, e.g. 152. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Return on investment Residual income (d) Save for Later (f) (h) (j) $ eTextbook and Media Controllable margin Company A Sales $1,580,000 $173,800 $790,000 (c) % (e) (g) A X (k) $ Sales Average operating assets Company B $725,800 $152,418 % (a) $ (b) 2.1 % (i) LA (1) $ Company C Attempts: 0 of 2 used $5,387,000 0.6 % 5 Submit Answer
Assume a company reported the following information: Sales Minimum required rate of return on average operating assets Turnover Return on investment (ROI) The residual income is closest to: Multiple Choice O O O $14,800. $10,800. $16,800. $20,800. $ 900,000 9.2% 1.5 12%
Return on investment is often expressed as follows: d. Requirements 1. What are the advantages of breaking down the computation into two separate components? 2. Fill in the blanks for the following table: Revenues Income Investment Income as a percentage of revenues Investment turnover ROI Requirement 2. Fill in the blanks for the following table: (Enter investment turnover to the nearest tenth, X.X.) Companies in Same Industry B Income and investment alone shed investment or to its A 1,400,000 $ 210,000 $ 700,000 % Company B does % income. 1,100,000 165,000 % Income Income Revenues Investment Revenues Investment 3% C Now comment on the relative performance of these companies as thoroughly as the data permit. light on comparative performances. Thus, we Company B should emphasize increasing investment turnover by reducing percentage of revenues by increasing only its 5,500,000 1.5% 2.0 = % Company A in terms of income margin. Company B has a Company A's. Company C's income as a…
One item is omitted from each of the following computations of the return on investment: Return on Investment = Profit Margin × Investment Turnover 18% = 10% × (a) (b) = 28% × 0.75 24% = (c) × 1.5 10% = 20% × (d) (e) = 15% × 2.2 Determine the missing items identified by the letters as shown above. If required, round your answers to two decimal places. Item Answer (a) fill in the blank 1 (b) fill in the blank 2% (c) fill in the blank 3% (d) fill in the blank 4 (e) fill in the blank 5%
Determining missing items in return on investment computation One item is omitted from each of the following computations of the return on investment: Return on Investment = Profit Margin x Investment Turnover 27 % = 10 % x (a) (b) = 16 % x 0.75 24 % = (c) x 1.5 14 % = 20 % x (d) (e) = 15 % x 1.8 Determine the missing items identified by the letters as shown above. If required, round your answers to two decimal places. (a) fill in the blank 1 (b) fill in the blank 2 % (c) fill in the blank 3 % (d) fill in the blank 4 (e) fill in the blank 5 %
ROI, comparisons of three companies. (CMA, adapted) Return on investment (ROI) is often ex- pressed as follows: Income Income Revenues Investment Revenues ^ Investment 1. What advantages are there in the breakdown of the computation into two separate components? 2. Fill in the blanks for the following table: Companies in Same Industry B $1,600,000 $ 96,000 $ 800,000 Revenues $1,300,000 Income $ 78,000 ? Investment $2,600,000 Income as a percentage of revenues Investment turnover 1.5% 2.0 ROI 3% After filling in the blanks, comment on the relative performance of these companies as thoroughly as the data permit.
Profit Margin, Investment Turnover, and ROI Briggs Company has income from operations of $132,756, invested assets of $299,000, and sales of $1,106,300. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin % b. Investment turnover c. Return on investment %
Calculate the missing values for each unique company. (Enter your ROI and Profit Margin percentage answers to one decimal place, (1.e., 0.123 should be entered as 12.3%). Round your Investment Turnover answers to 2 decimal places.) Profit Investment Turnover ROI Margin 8.8 % Company 1 Company 2 Company 3 Company 4 3.00 20.0 % 5.00 22.0 % 11.0 % 13.0 % 3.00
Profit Margin, Investment Turnover, and ROI Briggs Company has operating income of $72,576, invested assets of $224,000, and sales of $806,400. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin % b. Investment turnover c. Return on investment %
Return on investment (ROI) is computed in the following manner: ROI is equal to turnover multiplied by earnings as a percent of sales. Turnover is sales divided by total investment. Total investment is current assets (inventories, accounts receivable, and cash) plus fixed assets. Earnings equal sales minus the cost of sales. The cost of sales consists of variable production costs, selling expenses, freight and delivery, and administrative costs. Complete parts a and b. a. Construct an influence diagram that relates these variables. Choose the correct diagram below. Click here to view influence diagram D. Click here to view influence diagram C. Click here to view influence diagram A. Click here to view influence diagram B. b. Develop a mathematical model using the symbols defined on the left. E: Earnings T: Turnover ROI = T = E = S: Sales TI = C = C: Cost of Sales TI: Total Investment CA: Current Assets FA: Fixed Assets PC: Prod Costs SC: Sales Expense FC: Freight and Delivery AC: Admin…
S Firm J has net income of $124,800, sales of $960,000, and average total assets of $640,000. Required: Calculate Firm J's margin, turnover, and return on investment (ROI). Choose Numerator: Choose Numerator: Choose Numerator: Margin /Choose Denominator: Turnover /Choose Denominator: 1 1 Return on Investment /Choose Denominator: 1 1 11 11 II 11 = = || = = II Margin Margin Turnover Turnover Return on Investment Return on Investment