The following are selected data for the division for the consumer products of ABC Corp for 2019: Sales 50,000,000 Average invested capital (assets) 20,000,000 Net income 2,000,000 Cost of capital 8% What is the asset turn-over ratio for the division? 0.25 2.5 8 10% Group of answer choices 1 2 3 4
Q: Presented below are the condensed income statement of Vital Corporation for the years ended December…
A: The vital corporation for the year December 31, 2020 and 2019:
Q: The following is divisional information for Kingfisher Enterprises: East Division West Division…
A: Solution: East Division: Average assets = (1500000 + 1200000) / 2 = 1,350,000 Residual income =…
Q: Based on the data below, solve the following. Company A Financial leverage Net profit margin Total…
A: Introduction: ROE: A metric of financial performance known as return on equity (ROE) is obtained by…
Q: XYZ Company has two divisions, A and B. Information for each division is as follows: Net earnings…
A: Introduction: Sales are the number of goods and services sold by a company during a given reporting…
Q: Calculate the following ratios : Total Asset Turnover (TAT). Debt Ratio (DR%).
A: Total Asset Turnover: This ratio is used by the investors to know the efficiency of companies using…
Q: Washington Company has two divisions: the Adams Division and the Jefferson Division. The following…
A: Residual income means the income that one might continue to receive even after completion of the…
Q: a. Based on the data above, compute the ROI for the Eastern Division and the Western Division.…
A: Solution Note : Dear student as per the Q&A guideline we are required to answer the first three…
Q: Holo Company reported the following financial numbers for one of its divisions for the year; average…
A: Working Note: The formula for Residual income = Operating Income - (Minimum required rate of…
Q: Division A's asset turnover (AT) is (rounded to two decimal places):
A: Given that , Sales = $490000 Average investment = $416500 Operating income = $ 83300
Q: Assume that Major Manuscripts, Inc. is currently operating at 95 percent of capacity and that sales…
A: The process of creating, executing, and managing a budget is known as budgeting. Budget planning and…
Q: Sales P 10,000,000 Average invested capital…
A: Solution: Asset turn-over ratio of a division represents the efficiency of division's assets in…
Q: Far Sight is a division of a major corporation. The following data are for the latest year of…
A: Return on investment represents the profit earned on an investment made. It is calculated by…
Q: XYZ Corporation, whose tax rate is 30%, has two operating divisions, the Mandaue division and the…
A: The net income is the net profit of the company earned during the period. The net income includes…
Q: The 2020 income statement for the East Division of Procter Wells Company is as follows: Sales…
A: Return On Investment = Net Operating profit after tax / Invested Capital
Q: The following is available for Golden Corporation for 2019: Sales…
A: Solution: Return on investments = net income / average invested assets = 300000/ 500000 = 60%
Q: Dacker Products is a division of a major corporation. The following data are for the most recent…
A: Residual income is the income earned over and above income at minimum required rate of return level.…
Q: Omar Sdn Bhd requires a return on capital of 15 percent. The following information is available for…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: The following are selected data for the division for the consumer products of ABC Corp for 201'…
A: Sales = 50,000,000 Net profit = 2,000,000
Q: MEXICO Company and all its divisions are engaged in a merchandising business. The 2021 income…
A: Reportable Segment: Reporting financial and descriptive information regarding reportable segments is…
Q: The sales, income from operations, and invested assets for each division of Wren Company are as…
A: CALCULATION FOR RESIDUAL INCOME : = INCOME FROM OPERATION - (MINIMUM RATE OF RETURN X INVESTED…
Q: Paints Division of PorEleben, Inc. had the following operation result in 2019: Sales: P12,000,000…
A: 1. Return on investment Investment=p2000000 ROI=2000000*30%=p600000 Net income=p600000
Q: Divisional income statements for the year 2020 for the two divisions of a company appear below.…
A: Computation of ROI and answer for above question are as follows
Q: The following are selected data for the division for the consumer products of ABC Corp for 2019:…
A: Ratio analysis means where different ratio of various years of years companies has been compared and…
Q: Allied Construction and Axis Construction reported the following information in their annual…
A: Financial ratios are computed to get detailed information related to the company so that decisions…
Q: XYZ Inc. presented the following info regarding its two divisions classified as investment A…
A: Economic value added (EVA) refers to a measure of evaluating the companies performance based on the…
Q: • The following are selected data for the division for the consumer products of ABC Corp for 2019:…
A: Sales = 50,000,000 Assets = 20,000,000
Q: The following are selected data for the division for the consumer products of ABC Corp for 2019:…
A: Solution: Return on sales = net income / sales = 2000000/ 50000000 = 4%
Q: The following are selected data for the division for the consumer products of ABC Corp for 2019:…
A: Residual income for the division = Net income - average invested capital x Cost of capital
Q: Gideon Corp. is a reinsurance and financial services company. Gideon strongly believes in evaluating…
A: Residual income refers to the income a company earns over its required rate of return. It is…
Q: ) Cecil Inc. operates with three divisions: Naperville, Metropolitan and Urbana. Below are selected…
A: Ratio analysis is used by the companies and in accounting to evaluate the performance of the company…
Q: The following are selected data for the division for the consumer products of ABC Corp for 2020:…
A: Assets turnover ratio = Sales / Average Invested capital where, Average Invested capital =…
Q: The following are selected data for the division for the consumer products of ABC Corp for 2019:…
A: SOLUTION RESIDUAL INCOME FOR DIVISION = NET INCOME - AVERAGE INVESTED CAPITAL * COST OF CAPITAL .
Q: The following information for Ford Company for the year 2019 has been assembled: Market value at…
A: Asset turnover= Total Sales/ Average Assets Return on sales= Operating Profit/ Net Sales Debt…
Q: Presented below are the condensed income statement of Vital Corporation for the years ended December…
A: Loss is referred to as the amount by which the expenses exceed the revenues generated by the…
Q: The following condensed income statements of the Jackson Holding Company are presented for the two…
A: Income from continuing operations: It is the after tax income generated by a company from its…
Q: The following are selected data for the division for the consumer products of ABC Corp for 2020:…
A: Introduction:- The following formula used to calculate as follows:- Residual income = Net income -…
Q: Horizontal and Vertical Analysis. The operating activities of Metro Company for the year ended…
A: Horizontal analysis shows changes in numbers between two years in absolute amount and in percentage…
Q: The following data relates to the XYZ Corporation and its X Division.…
A: Economic Value Added (EVA) The Calculation of Economic Value Added which can be formulized by Net…
Q: NUBD Company has two divisions, X and Y. Information for each division is as follows: P40,000…
A: Economic value added (EVA) = Net earnings after tax - (Assets invested x Weighted average cost of…
Q: Crane Company has four operating divisions. During the first quarter of 2022, the company reported…
A: Contribution margin generally represents incremental money generated for each product sold after…
Q: Data for the wholesale products division of ABC Co. are as follows: Earnings before interest and…
A: As per cost accounting and financial reporting Economic value added = NOPAT - (WACC*INVESTED…
Q: The Best Medical Supply Company has two divisións that operate independently of one another. The…
A: Return on Investment = Operating IncomeInvestment x 100 North - ROI = Operating IncomeInvestmentx…
Q: Thornton Transport Company divides its operations into four divisions. A recent income statement for…
A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…
Q: Presented below is information related to Opra Company for 2019. Beginning retained earnings $…
A: Operating sales and operating costs are separated from nonoperating sales, nonoperating…
Q: Global Imex has two divisions; one located at Accra and the other in Takoradi. The following is an…
A: Performance evaluation of a segment or a division can be done using different ratio analysis. Using…
Q: Presented below are the condensed income statement of Vital Corporation for the years ended December…
A: Vital Corporation's Income statement for the year 31.12.2020 and 2019 year is given. In year 2020,…
Q: The following are selected data for the division for the consumer products of ABC Corp for 2019:…
A: Solution Return on investment = net income / average invested assets = 2000000/ 20000000 = 10%
Q: Bajaj Ltd. reported the following statistics and results for 2020: Net operating income Return on…
A: Operating assets refer to those assets that contribute to generating profits for the company. For…
Q: The following is available for Golden Corporation for 2019: Sales…
A: Residual income = Net income - Average invested capital (assets) X Cost of capital
- The following are selected data for the division for the consumer products of ABC Corp for 2019:
Sales |
50,000,000 |
Average invested capital (assets) |
20,000,000 |
Net income |
2,000,000 |
Cost of capital |
8% |
What is the asset turn-over ratio for the division?
- 0.25
- 2.5
- 8
- 10%
Step by step
Solved in 2 steps
- • The following are selected data for the division for the consumer products of ABC Corp for 2019: Sales 50,000,000 Average invested capital (assets) 20,000,000 Net income 2,000,000 Cost of capital 8% What is the asset turn-over ratio for the division? 1. 0.25 2. 2.5 3. 8 4. 10% O 1 O 2 O 3 4The following are selected data for the division for the consumer products of ABC Corp for 2019: Sales 50,000,000 Average invested capital (assets) 20,000,000 Net income 2,000,000 Cost of capital 8% What is the return on sales for the division? 1.4% 2. 8% 3.10% 4. 20% О1 O 2 O 4 3.The following are selected data for the division for the consumer products of ABC Corp for 2019: Sales 50,000,000 Average invested capital (assets) 20,000,000 Net income 2,000,000 Cost of capital 8% What is the amount of residual income for the division? P 400,000 P 1,000,000 P 1,600,000 P 2,000,000 Group of answer choices 1 2 3 4
- • The following are selected data for the division for the consumer products of ABC Corp for 2019: Sales 50,000,000 Average invested capital (assets) 20,000,000 Net income 2,000,000 Cost of capital 8% What is the return on investment for the division? 1. 2% 2. 4% 3. 8% 4. 10% О1 O 2 3 O 4Q6 Selected data from Box Division's accounting records revealed the following: Sales $ 825,000 Average investment $ 440,000 Net operating income $ 66,000 Minimum rate of return (divisional cost of capital) 14% Box Division's asset turnover (AT) is calculated to be: (Round your answer to three decimal places.) Multiple Choice 4.270. 1.070. 1.875. 12.500. 1.625.• The following are selected data for the division for the consumer products of ABC Corp for 2019: Sales 50,000,000 Average invested capital (assets) 20,000,000 Net income 2,000,000 Cost of capital 8% What is the amount of residual income for the division? 1. P 400,000 2. P 1,000,000 3. P 1,600,000 4. P 2,000,000 O 1 O 2 O 3 4
- Below is given the data for the assembly division of Charles Corporation: Sales Cost of Sales Operating Expenses $10,000,000 $15,000,000 Average Operating Assets $250,000,000 $310,000,000 2020 2021 $100,000,000 $165,000,000 $22,000,000 $28,000,000 Minimum Required Rate of Return Actual Cost of Capital Income Tax Rate Instructions 1. Compute the margin and turnover ratios for each year 2. Compute the ROI for each year 3. Compute the residual income for each year 4. Compute EVA for Charles Corporation for each year (Note: Round to 2 decimal) MacBook Air 9% 6% 30%The following results are available for Division X and Y:Division X Division YProfit before interest and tax P185 000 P172, 000Capital employed P1, 540, 000 P1, 650, 000The cost of capital is 10%.Calculate and comment on the performance of the departments based on:a. Return on capital employed (4 marks)b. Residual incomINCOME STATEMENT Hermann Industries is forecasting the following income statement:Sales $8,000,000Operating costs excluding depr. & amort. 4,400,000EBITDA $3,600,000Depreciation & amortization 800,000EBIT $2,800,000Interest 600,000EBT $2,200,000Taxes (40%) 880,000Net income $1,320,000The CEO would like to see higher sales and a forecasted net income of $2,500,000. Assumethat operating costs (excluding depreciation and amortization) are 55% of sales and thatdepreciation and amortization and interest expenses will increase by 10%. The tax rate, whichis 40%, will remain the same. What level of sales would generate $2,500,000 in net income?
- Zack Corp. had the following information for 2019: Sales $500,000Operating income 50,000Operating assets 200,000Imputed interest rate 10% What amount of residual income did Zack have?Presented below are the year-end balance of the assets and liabilitiespertaining to Starlight Merchandising 2020 2019Cash P150,000 P120,000Equity investment at FVPL 260,000 230,000AR, net 360,000 400,000Inventories 705,000 635,000Prepaid Expenses 130,000 128,000Accounts payable 182,000 136,000Other current liabilities 141,000 125,000Bonds Payable 200,000 200,000Additional investment made by the owner during 2020 was P150,000 but a P200,000 personal liability was paid out of company's funds. What is the company's profit or loss for the year ended December 31, 2020? 30,000 800,000 Answer not given 140,000 700,000Presented below are the condensed income statement of Vital Corporation for the years ended December 31, 2020 and 2019: 2020 2019 5,000,000 3,350,000 1,650,000 675,000 975,000 200,000 1,175,000 411,250 763.750 Sales Cost of goods sold Gross income 4,900,000 3,300,000 1,600,000 650,000 950,000 Operating expenses Operating income Gain on sale of division Net income before income tax 950,000 332,500 617,500 Income tax expense (35%) Net income On October 10, 2020, Chalangs entered into an agreement to sell the assets of one of its geographical segments. The geographical segment comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the company. The segment was sold on December 31, 2020, for P1,750,000. The book value of the segment's assets was P1,550,000. The segment's contribution to Chalangs' operating income before tax for each year was as follows: 2020 113,750 loss 81,250 income 2019 Assume that by…