a. D supplied following data are for the latest year of operations: Sales ₱24,480,000; Operating income ₱1,738,080; Average operating assets ₱6,000,000. Required rate of return 16% 1. What is D's ROI? 1. What is D's residual income?

a. D supplied following data are for the latest year of operations: Sales ₱24,480,000; Operating income ₱1,738,080; Average operating assets ₱6,000,000. Required rate of return 16% 1. What is D's ROI? 1. What is D's residual income?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A company's divislon has sales of $6,000,000, Income of $240,000, and average assets of $4,800.000.…

A: Financial ratios are used to check different aspects of a company - liquidity, solvency, etc. They…

Q: Lampent Lightings Company recorded for the past year sales of P522,500 and average operating assets…

A: Sales = P522,500 Operating assets = P250,000 ROI = 12.75% Net income required = Operating assets*ROI…

Q: X-1 Corp's total assets at the end of last year were $440,000 and its EBIT was $55,000. What was its…

A: The basic earning power ratio is another profitability ratio (BEP). The goal of BEP is to assess how…

Q: KIEMS ltd has a current sales level of Sh 25,000,000. It has established that sales will be growing…

A: Financial forecast - It showing the projected financial statements incorporate current trends to…

Q: Pollux Company had the following income statement for last year Sales-$360,000 Less: Cost of goods…

A: A. Average operating assets = (Beginning Assets + Ending assets) / 2 Average operating assets =…

Q: Given the following data for SUPERCALIFRAGILISTICEXPIALIDOCIOUS COMPANY for the year ended December…

A: Gross Income = Net Sales - Cost of Sales Total Income = Gross Income + Other Income Total Expenses =…

Q: der the following data and determine w Domestic erating income $ 8,000,000 erage total assets…

A: The formula to calculate return on Investment is: Return on Investment = Operating Income/ Average…

Q: The sales and profit during the years were as follows : Profit Year Sales 2010 2,40,000 30,000 2011…

A: The solution is given below

Q: The following selected data for BC Company for 2022: Sales P 2,000,000 Variable Costs 1,200,000…

A: Formulas: Residual income = Net Operating income - Average Invested Capital x Required rate of…

Q: Crane reported the following information for its fiscal year end: On net sales of $ 53.000 billion,…

Q: Return on Investment (ROI) and Residual Income Relations A family friend has asked your help in…

A: Calculating Margin, Turnover, Return of Income for Division and Residual Income: In order to find…

Q: Compute the operating income. $ 2. Compute the margin (as a percent) and turnover ratio. If…

Q: Sales revenue for XYZ Company is $1,000,000. The cost of goods sold is $450,000 and the operating…

A: Thus, the net operating income is $300,000.

Q: Margin, Turnover, Return on Investment Pelak Company had sales of $4,887,000, expenses of…

A: Operating income = Sales - Expenses Margin = Operating income/Sales Turnover = Sales/Average…

Q: When vertical analysis is applied to the income statement of a business with net sales of 1,000,000…

A: The vertical analysis of the income statement is the analysis where the percentage of all the items…

Q: Required: a. Firm D has net income of $27,500, sales of $990,000, and average total assets of…

A: Average total assets = net income/ROI = 62,000/12% = $516,666.666 or $516,667 (rounded off)

Q: 1- If you know that net sales are 60,000, fixed expenses 20,000, and cost of sales 30,000, then the…

A: The break even sales are the sales where business earns no profit no loss during the period.

Q: Use this information for Mason Corporation to answer the question that follow. Mason Corporation had…

A: The money that left over in the business after paying off all expenses and costs is called as…

Q: Given the following data: Average operating assets $ 432,000 Total liabilities $ 54,000…

A: Return on investment is a financial ratio which evaluates the efficiency of a project or…

Q: Tech Manufacturing Company realized P15,000,000 in sales, with a cost of goods sold of P6,000,000,…

A: The ratio analysis helps to analyze the financial statements of the business. The Return on assets…

Q: Mr. Park presented its projected net sales of 30,000,000.00 to the Board as part of the business…

A: Gross profit ratio = 1 - Cost of goods sold % = 1 - 0.76 = 24%

Q: Use this information for Mason Corporation to answer the question that follow. Mason Corporation had…

A: Ratio analysis: This is the quantitative analysis of financial statements of a business enterprise.…

Q: Largo Company recorded for the past year sales of $414,400 and average operating assets of $259,000.…

A: Answer) Calculation of Margin needed to earn Target Net Operating Income Desired Margin = Net…

Q: Simple ROI and Residual Income Calculations: Consider the following data: Division Y P2,000,000…

A: Since you have asked two different questions under a single question. Kindly resubmit the question…

Q: Accelerated Logistics provides the following information: Operating income $1,600,000 $15,000,000…

A: The profit margin ratio is calculated as the ratio of net profit and sales revenue

Q: NUBD Division reported a residual income of P200,000 for the year just ended. The division had…

A: Answer - Formula - Residual Income = Operating Income - ( Capital Invested * Target Rate of…

Q: A company reported the following for its most recent year of operations: Return on investment…

A: Average operating assets = $ 170,000 Return on investment = 20% Net income = Average operating…

Q: Given the following data: Average operating assets $1,152,000 Total liabilities 65,280 $ 384,000 $…

A: Return on Investment: Return on Investment is a profitability measure of Investment in a company.…

Q: Assume a company reported the following results: Sales Variable expenses Contribution margin Fixed…

A: Actual income=operating assets×Minimum return

Q: Assume a company reported the following results: Sales Variable expenses Contribution margin Fixed…

A: Residual income: Residulal income means excess of income earned over the desired income. Desired…

Q: Sales revenue for XYZ Company is $1,000,000. The cost of goods sold is $450,000 and the operating…

A: The following calculations are done in the records of XYZ Company to evaluate the residual income of…

Q: Briggs Company has operating income of $36,000, invested assets of $180,000, and sales of $720,000.…

A: Solution- (1) Profit margin = operating income/sales = $36000/$720000 = 5% (2) investment…

Q: DRS Sdn. Bhd. earned operating income last year as shown in the following income statement: Sales =…

A: Return on Investment (ROI) = Operating income ÷ Average operating assets * 100 Residual income =…

Q: [The following information applies to the questions displayed below.] Suresh Co. expects its five…

A: Budgeted income statement is prepared to estimate the amount of profit or loss in a future period.

Q: Profit Margin, Investment Turnover, and ROI Snodgrass Company has income from operations of…

A: Profit margin means where profit is divided with sales and percentage is found out. Investment…

Q: Du Pont Analysis TRP has total receiveables of $3,000, which represents 20 days sales. Total assets…

A: The computation of asset turnover ratio is as follows: Hence, the asset turnover ratio is 0.73…

Q: What is the Residual Income for Stevenson Corporation, given the following info: Invested Assets =…

A: Residual income is the excess of income over the minimum required rate of return. It indicates the…

Q: Suresh Co. expects its five departments to yield the following income for next year. Dept. P $56,000…

A: Departmental income statement are the statement prepared to know the performance of the departments…

Q: Given the following data: Average operating assets Total liabilities $728, 000 $ 51,840 $432,000…

A: Return on investment = Net operating income / Average operating assets where, Average operating…

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: BR Company has a contribution margin of 18%. Sales are $423,000, net operating income is $76,140,…

A: Answer - Formula of Return on Investment = Net operating income / Average operating assets…

Q: (a) the profit margin, (b) the investment turnover, and (c) the return on investment.

A: Profit margin refers to the measure of profitability. Investment turnover refers to the measure for…

Q: Flamengo Co is a sporting goods manufacturing. Last year, report the following Income Statement:…

A: In this question, we have been asked to find out the return on investment, for which we have been…

Q: Projected total revenue for the following year would be:

A: Accounting: Accounting is the art of recording, classifying and summarizing in a significant…

Question

a. D supplied following data are for the latest year of operations: Sales ₱24,480,000; Operating income ₱1,738,080; Average operating assets ₱6,000,000. Required rate of return 16%

1. What is D's ROI?

1. What is D's residual income?

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Margin, Turnover, Return on Investment Pelak Company had sales of $5,003,000, expenses of $4,607,000, and average operating assets of $4,840,000. Required: 1. Compute the operating income.$ 2. Compute the margin (as a percent) and turnover ratio. If required, round your answers to one decimal place. Margin % Turnover 3. Compute the ROI as a percent. Use the part 2 final answers in these calculations and round the final answer to two decimal places.%
1. ValleMiramar has the following data: Net sales, P1.8 M; Costs of Goods Sold , P 1.08; Operating Expenses, P 315,000; Earning’s before interests and profit, P405,000; Net income, P195,000; Total Stockholders’ Equity P.75M; Total Assets P 1M. . The return on investment is: a. 22.5% b. 26.5% c. 19.5% d. 40.5% 2. Refer to no. 1 the debt. and operating ratio are a. .25 and .775 c. .25 and .175 b. .75 and .775 d. .75 and .175 3. Extracts from the balance sheet ( 000,000 ) of A Co. as follows: Current Assets Merchandise Inventory P 77.1 Accounts Receivable 50.1 Cash on Hand and in 85.0 Creditors: Amounts falling due within one year 70.2 Bank Overdraft Other Creditors…
If the gross profit ( 2250 000 )D. The total Cost ( 4750 000 )D. , and the Sales value ( 7000 000 )D.The percnt of gross ?/
Profit Margin, Investment Turnover, and ROI Cash Company has income from operations of $43,578, invested assets of $269,000, and sales of $726,300. 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 %
19. Using the following information, calculate the return on assets. Net income for November Total assets, November 1 Total assets, November 30 $ Identify the formula and then solve for return on assets (ROA). (Round the ROA to the nearest tenth percent, X.X%.) ROA + 4,710 55,000 102,000 + = %
Assume the following sales data for a company: Current year $1,025,000 Preceding year 820,000 What is the percentage increase in sales from the preceding year to the current year? Oa. 125% Ob. 25% Oc. 75% Od. 100%
Total annual revenue Total revenue growth rate Terminal revenue growth rate Net operating profit margin (NOPM) Net operating asset turnover (NOAT) Projected total revenue for the following year would be: Select one: O O O $2,850,649 5.0% 2% 8.2% 3.42 a. $2,993,181 b. $2,948,141 c. None of these are correct d. $2,907,662
Profit Margin, Investment Turnover, and ROI Briggs Company has operating income of $108,955, invested assets of $283,000, and sales of $990,500. 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 %
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 %
Assume the following sales data for a company: Current year $770,668 Preceding year 635,551 What is the percentage increase in sales from the preceding year to the current year? a.121.26% b.17.53% c.82.47% d.21.26%
19. Using the following information, calculate the return on assets. Net income for November Total assets, November 1 5,000 76,000 Total assets, November 30 80,250 ... Identify the formula and then solve for return on assets (ROA). (Round the ROA to the nearest tenth percent, X.X%.) ÷ ROA %
Amir Company’s net income and net sales are $18,000 and $1,100,000, respectively,and average total assets are $100,000. What is Amir’s return on assets?a. 20.0%b. 18.0%c. 3.7%d. 7.0%