Answered: Assume a company reported the following…

Assume a company reported the following results: Sales Net operating income Average operating assets Margin Turnover Return on investment (ROI) The margin is closest to: $ 300,000 ? $ 187,500 ? ? 35%

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 4BE: Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested...

See similar textbooks

Related questions

Q: Epic Incorporated has 10,300 shares of $2 par value common stock outstanding. Epic declares a 8%…

A: Introduction: Mostly, an organization declares dividends by way of two form: 1. Cash dividends and…

Q: All of the following are calculated on Form 990-PF, EXCEPT: Excise tax on investment income.…

A: It is the return of private foundation or Section 4947(a)(1) Trust Treated as Private Foundation.

Q: Required information Problem 10-54 (LO 10-2, LO 10-3) (Algo) Convers Corporation (calendar year-end)…

A: Depreciation is the reduction in the value of asset by using various methods over a period of time.

Q: PLEASE ANSWER THIS WITH 5 paragraphs. Write it as if you're a memo. Concepts of Relevant cost.

A: Managerial accounting involves the presentation of financial information for making business…

Q: uring the current year, Peach Industries' reports sales of $184,000 and an average Odays. The…

A: Introduction:- The following formula used to calculate gross margin percentage as follows:- Gross…

Q: Presented below are three revenue recognition situations. (a) Groupo sells goods to MTN for…

A: The transaction price is the remuneration to which an entity expects being entitled, less amounts…

Q: [The following information applies to the questions displayed below.] $ 13,900 23,500 280,000…

A: Introduction: Non-cumulative preferred stocks are those preferred stocks that are paid dividends…

Q: The coupon interest rate: O Is larger than the stated interest rate Is the same as the market…

A: Bonds are the obligation on an entity. These are securities which are issued by the entity in order…

Q: Intro You are evaluating an investment project costing $49,000 initially. The project will provide…

A: Answer to Question:-1 Payback Period of this project =8 years…

Q: Acar loan of $18,290 is to be repaid by equal monthly payments for three years. The interest rate is…

A: Lets understand the basics. When asset is purchased on loan then asset is needed to record at cost.…

Q: n January 1, 2024, reliable delivery service purchased a truck at a cost of $65,000. Before placing…

A: Depreciation is the amount which is to be reduced from value of assets to recognise the normal…

Q: Which of the following statements about the use of relevant cost analysis in decision making is…

A: The Cost play an important role in decision making because it is concern with all the decisions…

Q: Not everyone pays the same price for the same model of a car. The figure illustrates a normal…

A: The price of Cars are different for customers and some customer are given less price and some are…

Q: Coronado Company's condensed financial statements provide the following information. Cash CORONADO…

A: Current and quick ratio are the liquidity ratios that are determined in order to know the liquidity…

Q: On January 1, 2021, Loop Raceway issued 520 bonds, each with a face value of $1,000, a stated…

A: The bonds are the financial instruments for the business to raise money from the investors. The…

Q: have a: par value and sell for $19 cash per share. stated value and sell for $19 cash per shar

A: Answer : Date Account title Debit Credit 1 Cash a/c Dr. (41000*$19) $779,000 To common…

Q: Rodriguez Corporation issues 10,000 shares of its common stock for $76,900 cash on February 20.…

A: Shares are the instrument which has been used by the company to get capital from the market, there…

Q: Retirement -Sale of interest to partnership (Asset Revaluation) Long-term partners, A, B, and C have…

A: The withdrawal partner can sell his share directly to other partners or the partnership firm. The…

Q: You buy a share of stock today for $ 396 and receive quarterly dividends of $2.30 at the end of each…

A: Introduction: An investor invests in stock to generate two types of income - One dividend income and…

Q: CLASSIFICATION 1. At what amount should the equity investment be initially recorded? 2. How much is…

A: 1. On the date of Purchase equity instruments should be recorded at following Amount Particulars…

Q: The draft adjusted trial balance of Alberta Enterprises Ltd., a publicly quoted company, at December…

A: Statement of financial position: It is the financial statement that shows the position of a…

Q: Rodrigo and Harry are both owners of an existing single proprietorship businesses. They agreed to…

A: The assets invested by partners in the partnership firm are recorded at fair market value of those…

Q: Can subparts 4 and 5 be answered on this problem

A: Net present value is used to calculate the current total value of future payments. It is the…

Q: Find the gross income, the adjusted gross income, and the taxable income. Base the taxable income on…

A: Taxable income: It is a part of a taxpayer's total income that is used to calculate the income tax…

Q: n 2020, Juergen made after-tax contributions of $24,300 to his employer's qualified plan. In August…

Q: Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data…

A: The overhead rate is calculated as total estimated overhead cost divided by estimated base activity.…

Q: Required a. Prepare the purchase entry assuming a perpetual inventory system. b. Determine the value…

A: Requirement:-a Preparation of purchase entry as follows under:- Note:- Total cost to be allocated =…

Q: Ahrends Corporation makes 44,000 units per year of a part it uses in the products it manufactures.…

A: Introduction: While deciding on make or buy decision following should be considered: 1. All…

Q: Wreck and Ralph form a new partnership. Wreck invests P500,000 in cash. Ralph contributes land that…

A: Partnership is the firm which is run by two or more partners on the basis of partnership agreement,…

Q: Ivanhoe Company incurred research and development costs of $90000 and legal fees of $30000 to…

A: Research and development costs should be expensed and legal fees should be capitalized.

Q: Last year Robert transferred a life insurance policy worth $470,000 to an irrevocable trust with…

A: It is the amount of tax levied on the property or estate of a deceased person.

Q: During the current year, Kite Corporation had average total assets are $500,000, total asset…

A: Equity multiplier refers to the indicator of risk which is used for the measurement of the portion…

Q: - -→ Below is a stockholders' equity section of Crimson, Inc.: 6% noncumulative preferred stock $50…

A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after…

Q: Your factory has been offered a contract to produce a part for a new printer. The contract would…

A: Answer to Question (a):- The NPV of the project is $5.28 million…

Q: Rex Industries plans to expand its product line. The project requires an initial investment of…

A: Annual net cash inflows = Operating income + Depreciation Payback period = Investment/Annual net…

Q: Mogul Company uses a 12% discount rate in making capital budgeting decisions. Mogul is considering a…

A: Internal Rate of Return (IRR) is the rate at which present value of cash outflows is equal to the…

Q: Feta Corporation is considering the addition of a new product line. The expected annual revenue and…

A: CONTRIBUTION MARGIN Contribution Margin is Computed by deducting Total Variable Cost from Total…

Q: matical skills around cost structures and appropriate equations to answer the following, inclusive…

A: Financial Statement - In exchange for investors' money, a business has an obligation to provide them…

Q: B C D Direct materials $ 13.00 $ 8.90 $ 9.70 $ 9.30 Direct labor 18.10 26.10 32.30 39.10 Variable…

A: Firstly we need to compute Contribution margin per Minute as minutes are constrained resource in…

Q: On January 1, 20X1 ABC Company issued a $1,000,000 10-year bond with a stated interest rate of 9%…

A: Bonds :Bonds is a long-term debts issued by the government and companies to raise funds for their…

Q: rker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its…

A: A standard cost is a predetermined target cost that provides a benchmark against which actual…

Q: Garnet Enterprises is considering an investment in new equipment that would allow the company to…

A: Simple rate of return is calculated by dividing the Net operating income by the initial investment.…

Q: What amount of interest will be charged on $20 000 in 1 month for a simple interest of 5.99%?

A: Simple interest is a simple method of computing interest on savings or borrowings. It is a rate that…

Q: company issued a 60 day 11% note for $17,000. What is the principal amount of the note? Round your…

A: The calculations of principal amount is it important thing on the two understand and complete…

Q: Presented below is a list of possible transactions. Analyze the effect of the 18 transactions on the…

A: The financial statements are the essential books of records prepared by the company. It includes an…

Q: Jones Cola sells bottled beverages. During the past year, 41,000 bottles were produced and sold at a…

A: Answer to Question:- Incremental profit associated with the price increase:- $9,500…

Q: 1 (a) Product P63 is made by three sequential processes, I, II, and III. In process III a…

A: Process Costing is a type of accounting method which is mostly used by those companies that produce…

Q: Dashboard Inc. manufactures and assembles automobile instrument panels for both eCar Motors and…

A: Since you have asked for more then 3 subparts we are able to provide solution for first 3 parts only…

Q: A customer service department has the following resolution response Average Response Time First…

A: Value added time= First contact time + Service scheduling time + Service time Value-added ratio =…

Q: Purchased a machine with $100,000. Decided to take 50% Bonus in the first year, and put in 3-years…

A: Answer:- Depreciation meaning:- Depreciation is basically a reduction in the fixed asset's book…

Question

Assume a company reported the following results:
Sales
Net operating income
Average operating assets
Margin
Turnover
Return on investment (ROI)
The margin is closest to:
$ 300,000
?
$ 187,500
?
?
35%

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

Profit Margin, Investment Turnover, and ROI Cash Company has income from operations of $55,704, invested assets of $211,000, and sales of $506,400. 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
Profit Margin, Investment Turnover, and ROI Cash Company has income from operations of $19,754, invested assets of $83,000, and sales of $282,200. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin fill in the blank 1% b. Investment turnover fill in the blank 2 c. Return on investment fill in the blank 3%
Profit Margin, Investment Turnover, and ROI Briggs Company has operating income of $13,824, invested assets of $96,000, and sales of $230,400. 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 ?
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 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%
Using the information calculate ROI Income 6,000 Revenue 24,000 Average assets 10,000
Shalom Company provided you the following data: Net operating income Total liabilities Contribution margin Average operating assets Sales 150,000 350,000 400,000 750,000 800,000 What is the return on investment?
Data Sales Net operating income Average operating assets Minimum required rate of return Enter a formula into each of the cells marked with a ? below Review Problem: Return on Investment (ROI) and Residual Income Compute the ROI Margin Turnover ROI Compute the residual income Average operating assets $25,000,000 $3,000,000 $10,000,000 25% Net operating income Minimum required return Residual income ? ? ? ? ? ? ?
For its three investment centers, Indigo Company accumulates the following data: Sales Controllable margin Average operating assets 1 $2,400,000 $4,800,000 $4,800,000 1,560,000 2.208,000 6,000,000 9,600,000 The return on investment i 11 Compute the return on investment (ROI) for each center. % 111 4,080,000 12,000,000 HE %
Profit Margin, Investment Turnover, and ROI Briggs Company has an operating income of $36,000, invested assets of $180,000, and sales of $720,000. Use the DuPont formula to compute the return on investment. a. Profit margin % b. Investment turnover c. Return on investment %
Margin, Turnover, Return on Investment Pelak Company had sales of $4,945,000, expenses of $4,566,000, and average operating assets of $3,690,000. 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. %
Assume a company reported the following results: Sales $ 400,e00 Variable expenses Contribution margin Fixed expenses 260,e00 140,000 96,e00 Net operating income $ 44,000 Average operating assets $ 350, 000 The margin is closest to: Muitiple Choice 12.9%. 35.0%. 114.3%.