Westerville Company reported the following results from last year’s operations: Sales $ 1,000,000 Variable expenses 300,000 Contribution margin 700,000 Fixed expenses 500,000 Net operating income $ 200,000 Average operating assets $ 625,000
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Required information
The Foundational 15 (Static) [LO10-1, LO10-2]
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[The following information applies to the questions displayed below.]
Westerville Company reported the following results from last year’s operations:
Sales | $ 1,000,000 |
---|---|
Variable expenses | 300,000 |
Contribution margin | 700,000 |
Fixed expenses | 500,000 |
Net operating income | $ 200,000 |
Average operating assets | $ 625,000 |
At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics:
Sales | $ 200,000 | |
---|---|---|
Contribution margin ratio | 60 | % of sales |
Fixed expenses | $ 90,000 |
The company’s minimum required
Foundational 10-11 (Static)
11. What is last year’s residual income?
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- Required information The Foundational 15 (Algo) [LO11-1, LO11-2] Skip to question [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year’s operations: Sales $ 1,400,000 Variable expenses 510,000 Contribution margin 890,000 Fixed expenses 610,000 Net operating income $ 280,000 Average operating assets $ 875,000 At the beginning of this year, the company has a $175,000 investment opportunity with the following cost and revenue characteristics: Sales $ 280,000 Contribution margin ratio 50 % of sales Fixed expenses $ 98,000 The company’s minimum required rate of return is 15%. Foundational 11-8 (Algo) 8. If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year? (Round your answer to 2 decimal places.)Required information The Foundational 15 (Algo) [LO11-1, LO11-2] Skip to question [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year’s operations: Sales $ 1,400,000 Variable expenses 510,000 Contribution margin 890,000 Fixed expenses 610,000 Net operating income $ 280,000 Average operating assets $ 875,000 At the beginning of this year, the company has a $175,000 investment opportunity with the following cost and revenue characteristics: Sales $ 280,000 Contribution margin ratio 50 % of sales Fixed expenses $ 98,000 The company’s minimum required rate of return is 15%. Foundational 11-7 (Algo) 7. If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? (Round your percentage answer to 1 decimal place (i.e .1234 should be entered as 12.3))Required information The Foundational 15 (Algo) [LO10-1, LO10-2] [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,800,000 740,000 1,060,000 700,000 $ 360,000 $ 1,200,000 At the beginning of this year, the company has a $400,000 investment opportunity with the following cost and revenue characteristics: Sales $ 600,000 Contribution margin ratio Fixed expenses 60% of sales $ 288,000 The company's minimum required rate of return is 10%. Foundational 10-12 (Algo) 12. What is the residual income of this year's investment opportunity? Answer is complete but not entirely correct. Residual income $ 432,000 x
- Oreo reported the following for the period:Sales P1,000,000Cost of Sales P300,000Operating expenses P100,000Determine the OSD assuming that Oreo is a corporationThe following information has been assembled about Casbar Corp. as at December 31, Year 5 (amounts are in thousands): Operating segment Revenues Profit Assets $25,100 5,980 23,200 A $ 23,000 $ 6,400 B 15,100 C 16,000 (2,540) 16,100 D 4,700 1,100 9,550 E F 15,000 5,100 1,800 8,950 (380) 4,700 Required: Determine which operating segments require separate disclosures. (Round the intermediate calculations to nearest percentage.) Operating segment(s) (Click to select)Question. Sales $500,000 irning Hub Operating Expenses (200,000) Interest Income $25,000 Gray Corporation has the following activity for year ending December 31, 2021: Interest Expense (150,000) Depreciation (35,000) Gray's avergae annual receipts is $27 Million What is Gray's taxable income? $192,500 $175,000 $115,000 $140,000 ssignmentSe... @ REA AP-Study Cen... Welcome to the Al... S
- Revlon Company provided the following data for the current Problem 13-16 (IAA) year. Segment Revenue Profit (loss) Assets 620,000 100,000 340,000 190,000 180,000 70,000 120,000 380,000 200,000 20,000 70,000 ( 30,000) ( 25,000) 10,000 ( 20,000) ( 25,000) 400,000 80,000 300,000 140,000 180,000 120,000 140,000 140,000 Others * The "others" category includes five operating segments, none of which has revenue or assets greater than P80,000 and none with an operating profit. Operating Segments 1 and 2 produce very similar products and use very similar production processes, but serve different customer types and use quite different product distribution system. These differences are due in part to the fact that Segment 2 operates in a regulated environment while Segment 1 does not. *. Operating Segments 6 and 7 have very similar products, production processes, product distribution systems, but are organized as separate divisions since they serve substantially different types of customers.…Required information [The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) Income results for the year. Department P $ 66,000 Sales Expenses Avoidable Unavoidable Total expenses Income (loss) Department Department M Department N Department O Department P Department T Department M Department N $ 85,000 $ 45,000 Decision 17,800 58,200 76,000 $ 9,000 46,000 22,200 68,200 $ (23,200) Department O $ 79,000 19,300 5,800 25,100 $ 53,900 a. If the company plans to eliminate departments that have sales less than avoidable costs. 22,000 53,900 75,900 $ (9,900) Department T $ 39,000 52,200 21,000 73,200 $ (34,200) Total $ 314,000 157,300 161,100 318,400 $ (4,400) department(s) would be eliminated?The following data are taken from the records of Dove Company, a division of Oasis Corporation for the year ended December 31, 2021 Sales 120,000,000.00Less: Variable Cost and Expenses 8,000,000.00Contribution Margin 4,000,000.00Less:: Direct Fixed Cost and Expenses 1,000,000.00Segment Income 3,000,000.00 The company used an average assets of P8,000,000.00 in 2021. The cost of capital is 12% Calculate the following:1. Return on Sales2. Asset Turnover3. ROI4. Residual Income
- Problem 11-17 (Algo) Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, IncorporatedBalance Sheet Beginning Balance Ending Balance Assets Cash $ 139,000 $ 133,000 Accounts receivable 340,000 489,000 Inventory 560,000 487,000 Plant and equipment, net 821,000 791,000 Investment in Buisson, S.A. 395,000 434,000 Land (undeveloped) 254,000 249,000 Total assets $ 2,509,000 $ 2,583,000 Liabilities and Stockholders' Equity Accounts payable $ 378,000 $ 333,000 Long-term debt 1,041,000 1,041,000 Stockholders' equity 1,090,000 1,209,000 Total liabilities and stockholders' equity $ 2,509,000 $ 2,583,000 Joel de Paris, IncorporatedIncome Statement Sales $ 5,264,000 Operating expenses 4,369,120 Net operating income 894,880 Interest and taxes: Interest expense $ 118,000 Tax expense 207,000 325,000 Net income $ 569,880 The…Problem 11-17 (Algo) Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc.Balance Sheet BeginningBalance EndingBalance Assets Cash $ 138,000 $ 134,000 Accounts receivable 342,000 483,000 Inventory 580,000 473,000 Plant and equipment, net 810,000 820,000 Investment in Buisson, S.A. 400,000 435,000 Land (undeveloped) 248,000 250,000 Total assets $ 2,518,000 $ 2,595,000 Liabilities and Stockholders' Equity Accounts payable $ 375,000 $ 340,000 Long-term debt 1,046,000 1,046,000 Stockholders' equity 1,097,000 1,209,000 Total liabilities and stockholders' equity $ 2,518,000 $ 2,595,000 Joel de Paris, Inc.Income Statement Sales $ 5,103,000 Operating expenses 4,235,490 Net operating income 867,510 Interest and taxes:…Q Rogue Industries reported the following items for the current year: Sales = $3,000,000; Cost of Goods Sold = $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000; Interest Expense = $30,000; Marketing Expenses $80,000; and Taxes = $300,000. Rogue's operating income is equal to (use an integer number without $ sign, such as $1,234,567⇒ 1234567) Question 25 Tiada