company reported the following data for its past 2 years of operation: Year 1 Return on Investment Residual Income Required Rate of Return Sales Year 2 20% $25,000 10% 18% 8% $400,000 $500,000 Asset Turnover Assets Net Operating Income dditional Information: - The sales margin in Year 2 is twice the margin of the first year. 2. The company had the same asset turnover in both years.
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- Your company has net sales revenue of $43 million during the year. At the beginning of the year, fixed assets are $15 million. At the end of the year, fixed assets are $17 million. What the fixed asset turnover ratio? Multiple Choice 2.87 1.34 2.53 269The Dry Wall Division reports the following operating data for the past two years: Year 1 Year 2 Margin 12 % ? Asset Turnover 3.0 2.0 Average operating assets ? $ 152,500 Net operating income $ 41,900 ? Stockholders’ equity $ 82,500 $ 122,500 Sales ? ? The return on investment at the Dry Wall Division was exactly the same in Year 1 and Year 2.Net operating income in Year 2 amounted to: Multiple Choice $41,900. $30,000. $36,600. $54,900.Margin, Turnover, Return on Investment, Average OperatingAssetsElway Company provided the following income statement for the last year:Sales $1,040,000,000Less: Variable expenses 700,250,000Contribution margin $ 339,750,000Less: Fixed expenses 183,750,000Operating income $ 156,000,000At the beginning of last year, Elway had $28,300,000 in operating assets. At the end of the year,Elway had $23,700,000 in operating assets.Required:1. Compute average operating assets.2. Compute the margin and turnover ratios for last year. (Note: Round the answer formargin ratio to two decimal places.)3. Compute ROI. (Note: Round answer to two decimal places.)4. CONCEPTUAL CONNECTION Briefly explain the meaning of ROI.5. CONCEPTUAL CONNECTION Comment on why the ROI for Elway Company isrelatively high (as compared to the lower ROI of a typical manufacturing company).
- Following is information from Skyway Inc. for the year (in thousands). Total annual revenue $3,206,980 Total revenue growth rate 5.0% Terminal revenue growth rate 2% Net operating profit margin (NOPM) 8.2% Net operating asset turnover (NOAT) 3.42 Projected total revenue for the following year would be: Select one: a. $3,469,952 b. None of these are correct c. $3,316,659 d. $3,271,120 e. $3,367,329ast year Triangular Resources earned $5.4 million in net operating income and had an operating profit margin of 19.3 percent. If the firm's total asset turnover ratio was 1.59, what was the firm's investment in total assets?Required: 1. Compute the company's average operating assets for last year. 2. Compute the company's margin, turnover, and return on investment (ROI) for last year. Note: Round "Margin", "Turnover" and "ROI" to 2 decimal places. 3. What was the company's residual income last year? 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income % %
- Jefferson Memorial Hospital is an investment center as a division of Hospitals United. During the past year, Jefferson reported an after-tax income of $7 million. Total interest expense was $3,400,000, and the hospital tax rate was 30%. Total assets totaled $70.3 million, and non-interest-bearing current liabilities were $23,300,000. The required rate of return established by Jefferson is equal to 17% of invested capital. What is the residual income of Jefferson Memorial Hospital? Enter your answer in whole dollar.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. $2,907,662A company reported the following for its most recent year of operations: Return on investment Average operating assets Minimum required rate of return 20% $170,000 15% Given this information, the residual income for the year was: 24
- Calculating Average Operating Assets, Margin, Turnover, and Return on Investment East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales $3,750,000 Cost of goods sold 2,250,000 Gross margin $1,500,000 Selling and administrative expense 1,200,000 Operating income $ 300,000 Less: Income taxes (@ 40%) 120,000 Net income $ 180,000 At the beginning of the year, the value of operating assets was $1,600,000. At the end of the year, the value of operating assets was $1,400,000. Round your answers to two decimal places, when rounding is required. Required: For East Mullett Manufacturing, calculate: 1. Average operating assets $fill in the blank 1 2. Margin fill in the blank 2 % 3. Turnover fill in the blank 3 4. Return on investment fill in the blank 4 %Pollack Industries provides the following information: Desired rate of return 8% Cost of assets Annual profit before depreciation expense Annual depreciation expense $720,000 $330,000 $35,000 In determining ROI and residual income, the company uses the book value of assets at the beginning of a year. 1. Compute ROI for the third year: % 2. Compute residual income for the sixth year: $Calculating Average Operating Assets, Margin, Turnover, and Return on Investment East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales $3,750,000 Cost of goods sold 2,250,000 Gross margin $1,500,000 Selling and administrative expense 1,200,000 Operating income $ 300,000 Less: Income taxes (@ 40%) 120,000 Net income $ 180,000 At the beginning of the year, the value of operating assets was $1,600,000. At the end of the year, the value of operating assets was $1,400,000. Round your answers to two decimal places, when rounding is required. What is the average operating assets