East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales $630,000 Cost of goods sold 380,000 Gross margin $250,000 Selling and administrative expense 174,400 Operating income $ 75,600 Less: Income taxes (@ 40%) 30,240 Net income $ 45,360 Total capital employed equaled $419,000. East Mullett's actual cost of capital is 8 percent. Required: Calculate the EVA for East Mullett Manufacturing.
Q: East Mullett Manufacturing earned operating income last year as shown in the following income…
A: EVA = Net operating profit after tax - (WACC * Captial invested) Net operating profit after tax =…
Q: Beginning of year operating assets $3,220,000 End of year operating assets 3,020,000…
A: GIVEN Wildhorse Corp. reported the following: Beginning of year operating assets…
Q: The contribution format income statement for Huerra Company for last year is given below:…
A: Since you have posted question with multiple sub-parts , we will do the first three sub-parts for…
Q: The following selected data pertain to the belt division of Allen Corp. for last year: * Sales…
A: Ratio analysis is a method of measuring the financial position of the organization with different…
Q: Westerville Company reported the following results from last year’s operations: Sales $ 1,500,000…
A: 1. The margin related to this investment opportunity Particulars Amount Sales $ 420000…
Q: Westerville Company reported the following results from last year’s operations: Sales $ 1,500,000…
A: Residual income refers to the income that is left after making all the necessary payments of the…
Q: Westerville Company reported the following results from last year’s operations: Sales $…
A: = Residual income =Operating income– { Avg. operating assets x required rate of return (ROI)}…
Q: Robichau Inc. reported the following results from last year's operations: Sales Variable expenses…
A: RESIDUAL INCOME : = INCOME FROM OPERATIONS - (INVESTED ASSETS X MINIMUM RATE OF RETRUN)
Q: The following information relates to Zinc Corporation for last year: Sales Revenue ($500,000), Net…
A: Degree of operating leverage means the division of contribution with operating income. Variable cost…
Q: The contribution format income statement for Huerra Company for last year is given below:…
A: Return on investment: It is used to measure the efficiency of the investment of the organisation.
Q: The contribution format income statement for Huerra Company for last year is given below: Total $…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Solano Company has sales of $520,000, cost of goods
A: Return on Investment Return on investment (ROI) is a financial ratio used to calculate the benefit…
Q: Silver Incorporated reported the following results from last year’s operations: Sales $…
A: Return on investment (ROI) :— It is the ratio between net operating income and average operating…
Q: East Mullett Manufacturing earned operating income last year as shown in the following income…
A: Return on investment = Net income / Average operating assets where, Average operating assets =…
Q: X Solutions , a division of XYZ Corporation buys and installs aluminum windows. For the most recent…
A: >Return on Investment or ROI is the rate of return earned on given average invested assets.…
Q: Zekrom Corporation recorded the following information last year: Sales of ₱450,000; Net operating…
A: The degree of operating leverage (DOL) is calculated as ratio of contribution and operating income
Q: Westerville Company reported the following results from last year’s operations: Sales $…
A: Lets understand the basics. Return on investment is a net operating income generated by using its…
Q: San Francisco Sea Corp. has sales of $1,550,000, cost of goods sold of $820,000, other operating…
A: Return on investment is the ratio which indicates how much percentage of return a firm is able to…
Q: East Mullett Manufacturing earned operating income last year as shown in the following income…
A: Residual income = Operating income - Average operating assets x minimum rate of return
Q: Westerville Company reported the following results from last year's operations: Sales Variable…
A: Net operating income=Contribution-Fixed cost=$420,000×70%-$252,000=$42,000
Q: Westerville Company reported the following results from last year's operations: Sales Variable…
A: Additional income = ($520,000 x 70%) - $312,000 = $52,000
Q: Westerville Company reported the following results from last year’s operations: Sales $ 1,500,000…
A: Solution... (1). Last year's margin = Net income ÷ sales = $375,000 ÷ $1,500,000 = 0.25 =…
Q: Solano Company has sales of $740.000, cost of goods sold of $490,000, other operating expenses of…
A: Return on investment = Net profit/Average invested assets Investment turnover = Net sales/Average…
Q: The contribution format income statement for Huerra Company for last year is given below:…
A: Margin percentage is computed by dividing the net profit by sales. Turnover means the net sales of…
Q: Avocado Company has an operating income of $100,800 on revenues of $1,013,000. Average invested…
A: Return on Investment is a ratio that shows the relationship between net profit and the cost of…
Q: The statement of comprehensive income of Blanche Company for the current year is presented below…
A: Degree of operating leverage in the business shows how much operating income or income before taxes…
Q: Westerville Company reported the following results from last year’s operations: Sales $…
A: 1. Margin related to this year’s investment opportunity = Net operating income/Sales Net operating…
Q: [The following information applies to the questions displayed below.] Westerville Company reported…
A:
Q: 1. If the company pursues the investment opportunity and otherwise performs the same as last year,…
A:
Q: X Solutions , a division of XYZ Corporation buys and installs aluminum windows. For the most recent…
A: Economic value added (EVA): Economic value added indicates the profitability of the projects that…
Q: The Box Manufacturing Division of the Allied Paper Company reported the following results from the…
A: Return on Investment is a financial ratio that represents the value of return or gain earned on an…
Q: East Mullett Manufacturing earned operating income last year as shown in the following income…
A: EVA = Net Operating income after tax - Total capital employed x cost of capital
Q: es to the questions displayed below.] Westerville Company reported the following results from last…
A:
Q: Compute the company’s return on investment (ROI) for the period using the ROI formula stated in…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Flamengo Co is a sporting goods manufacturing company. Last year, report the following information:…
A: Profit margin refers to how much profit earn by a company from its total sales made during the year.
Q: 1. Compute X Solutions Residual Income, was the performance of the division acceptable?
A: A Residual income is an income that a person continues to earn after completing a production…
Q: During the current year, Sokowski Manufacturing earned income of $206,500 from total sales of…
A: Asset turnover = Sales / Average capital assets ROI = Margin * Turnover
Q: The contribution format income statement for Huerra Company for last year is given below: Total Unit…
A: Solution 1: Particulars Amount Sales $998,000.00 Operating income $80,000.00 Average…
Q: Calculating Average Operating Assets, Margin, Turnover, and Return on Investment East Mullett…
A: Average operating asset is calculated by adding opening operating asset and closing operating asset…
Q: Lampent Lightings Company recorded for the past year sales of ₱522,500 and average operating assets…
A: The calculation of margin that Lampent needed to earn in order to achieve an ROI of 12.75% is shown…
Q: What is the Profit Margin for Stevenson Corporation, given the following info: Invested Assets =…
A: Profit margin refers to the income earned by the company from the sale of goods and services after…
Q: 1. Assume that the contribution margin ratio of the investment opportunity was 65% instead of 70%.…
A: Solution:- 1)Calculations if the contribution margin ratio of the investment opportunity was 65%…
Q: Alpha Corporation recorded operating data for its Omega division for the year. Alpha requires its…
A:
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: Solano Company has sales of $520,000, cost of goods sold of $380,000, other operating expenses of…
A: Residual income - Residual income means income earned even if the process to generate those income…
Q: e 360,000 7.20 Income taxes @ 30% 108,000 2.16 Net income $ 252,000 $ 5.04 The company…
A: Profit margin is the ratio of Net Income to Sales of the company. Asset turnover ratio is the ratio…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000, 000. What is the sales margin?During the current year, Plainfield Manufacturing earned income of $845,000 from total sales of $9,350,000 and average capital assets of $13,500,000. Using the sales margin from the previous exercise, what is the total ROI for the company during the current year?The following data pertain to Turk Company's operations last year: Sales $ 900,000 Net operating income $ 36,000 Contribution margin $ 150,000 Average operating assets $ 180,000 Stockholders' equity $ 100,000 Plant, property, & equipment $ 120,000 If the residual income for the year was $9,000, the minimum required rate of return must have been:
- Youns Incorporated reported the following results from last year’s operations: Sales $ 10,500,000 Variable expenses 6,610,000 Contribution margin 3,890,000 Fixed expenses 3,260,000 Net operating income $ 630,000 The company’s average operating assets were $5,000,000. At the beginning of this year, the company has a $1,400,000 investment opportunity that involves sales of $2,800,000, fixed expenses of $616,000, and a contribution margin ratio of 30% of sales. If the company pursues the investment opportunity and otherwise performs the same as last year, the combined turnover for the entire company will be closest to:Alexander Inc. makes basketballs. The results for the year were as follows: Basketballs Sales $450,000 Income $72,000 Asset base $300,000 Weighted average cost of capital 15% Required:Compute the following amounts for the company:SHOW ALL CALCULATIONS. ROUND EACH NUMBER TO TWO (2) DECIMAL PLACES. D. Turnover. E. Margin.Silver Incorporated reported the following results from last year’s operations: Sales $ 7,200,000 Variable expenses 5,550,000 Contribution margin 1,650,000 Fixed expenses 1,146,000 Net operating income $ 504,000 The company’s average operating assets were $3,000,000. At the beginning of this year, the company has a $300,000 investment opportunity that involves sales of $480,000, fixed expenses of $100,800, and a contribution margin ratio of 30% of sales. If the company pursues the investment opportunity and otherwise performs the same as last year, the combined ROI for the entire company will be closest to:
- Polymer Coating Enterprises has an operating income of $100,000 on revenues of $1,000,000. Average invested assets are $500,000 and the Company has an 8% cost of capital. What is the residual income?Consider the information in the following table. Using the DuPont formula, calculate the rate of return on investment. Income from operations $70,000 Invested assets 250,000 Sales 560,000The profit for the year of Garena Ltd. works out to 12.5% of the capital employed and the relevant figures are as under: Sales. . 75,00,000 Direct Materials.. 32,50,000 Direct Labou.. 31,00,000 Variable Overheads.. „340,000 Capital Employed... 74,00,000 The new Sales Manager who has joined the company recently estimates for next year a profit of about 23% on capital employed, provided the volume of sales is increased by 10% and simultaneously there is an increase in Selling Price of 4% and an overall cost reduction in all the elements of cost by 2%. Required Find out by computing in detail the cost and profit for next year, whether the proposal of Sales Manager can be adopted.
- Alexander Inc. makes basketballs. The results for the year were as follows: Basketballs Sales $450,000 Income $72,000 Asset base $300,000 Weighted average cost of capital 15% Required:Compute the following amounts for the company:SHOW ALL CALCULATIONS. ROUND EACH NUMBER TO TWO (2) DECIMAL PLACES. A. Return on investment (ROI). B. Residual income if the desired rate of return is 20%. C. EVA. D. Turnover. E. Margin.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 assetsCalculating 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 %