Below is given the data for the assembly division of Charles Corporation:SalesCost of SalesOperating Expenses$10,000,000 $15,000,000Average Operating Assets $250,000,000 $310,000,00020202021$100,000,000 $165,000,000$22,000,000 $28,000,000Minimum Required Rate of ReturnActual Cost of CapitalIncome Tax RateInstructions1. Compute the margin and turnover ratios for each year2. Compute the ROI for each year3. Compute the residual income for each year4. Compute EVA for Charles Corporation for each year(Note: Round to 2 decimal)MacBook Air9%6%30%

Operating Asset or Fixed Asset Turnover Ratio represent the sales with respect to Average Operating…

Instructions 1. Compute the margin and tumover ratios for each year 2. Compute the ROI for each year 3. Compute the residual income for each year 4. Compute EVA for Charles Corporation for each year (Note: Round to 2 decimal)

Instructions 1. Compute the margin and tumover ratios for each year 2. Compute the ROI for each year 3. Compute the residual income for each year 4. Compute EVA for Charles Corporation for each year (Note: Round to 2 decimal)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Below is given the data for the assembly division of Charles Corporation:
Sales
Cost of Sales
Operating Expenses
$10,000,000 $15,000,000
Average Operating Assets $250,000,000 $310,000,000
2020
2021
$100,000,000 $165,000,000
$22,000,000 $28,000,000
Minimum Required Rate of Return
Actual Cost of Capital
Income Tax Rate
Instructions
1. Compute the margin and turnover ratios for each year
2. Compute the ROI for each year
3. Compute the residual income for each year
4. Compute EVA for Charles Corporation for each year
(Note: Round to 2 decimal)
MacBook Air
9%
6%
30%

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