452 Part 4/ Planning and Control10-7Seere Company provided the following income statement for last year.Margin; Turnover;ROI; AverageOperating AssetsLO3SalesLess: Variable expensesContribution marginLess: Fixed expensesOperating income$240,000195,000$ 45,00037,800247,200At the beginning of last year, Seere had $78,650 in operating assets. At the end ofthe year, Seere had $81,350 in operating assets.Required1. Compute average operating assets.2. Compute the margin and turnover ratios for last year. Compute ROI.

Name: 452 Part 4/ Planning and Control10-7Seere Company provided the follow
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Description: 452 Part 4/ Planning and Control10-7Seere Company provided the following income statement for last year.Margin; Turnover;ROI; AverageOperating AssetsLO3SalesLess: Variable expensesContribution marginLess: Fixed expensesOperating income$240,000195,00

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Seere Company provided the following income statement for last year. Sales Less: Variable expenses Contribution margin Less: Fixed expenses Operating income $240,000 195,000 $ 45,000 37,800 7,200 At the beginning of last year, Seere had $78,650 in operating assets. At the end of the year, Seere had $81,350 in operating assets. Required 1. Compute average operating assets. 2. Compute the margin and turnover ratios for last year. Compute ROI.

Seere Company provided the following income statement for last year. Sales Less: Variable expenses Contribution margin Less: Fixed expenses Operating income $240,000 195,000 $ 45,000 37,800 7,200 At the beginning of last year, Seere had $78,650 in operating assets. At the end of the year, Seere had $81,350 in operating assets. Required 1. Compute average operating assets. 2. Compute the margin and turnover ratios for last year. Compute ROI.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter11: Performance Evaluation And Decentralization

Section: Chapter Questions

Problem 27E: Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the...

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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).
LL Required Information The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: $ 2,300,00e 670,000 Sales Variable expenses Contribution margin Fixed expenses Net operating income 000'09 Average operating assets $1,437,500 At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses S0% of sales $ 161,000 The company's minimum required rate of return is 15%. 5. What is the turnover related to this year's investment opportunity? (Round your answer to 1 decimal place.) e here to search 近。 F4 F5 F7 F8 F10 F11 て2 24 4 % 9 08.
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:…
Required information [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 ROI At the beginning of this year, the company has a $300,000 investment opportunity with the following cost and revenue characteristics: Sales $ 1,800,000 435,000 1,365,000 1,005,000 $360,000 $ 1,200,000 $360,000 $ 216,000 The company's minimum required rate of return is 10% Contribution margin ratio Fixed expenses 70 of sales. 6. What is the ROI related to this year's investment opportunity?
1-11 Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the following income statement for the last year: Sales $842,130,000 Less: Variable expenses 559,845,000 Contribution margin $282,285,000 Less: Fixed expenses 194,203,000 Operating income $88,082,000 At the beginning of last year, Elway had $38,668,000 in operating assets. At the end of the year, Elway had $41,319,000 in operating assets. Required: 1. Compute average operating assets.$fill in the blank 1 2. Compute the margin (as a percent) and turnover ratios for last year. If required, round your answers to two decimal places. Margin Turnover 3. Compute ROI as a percent. Use the part 2 final answers in these calculations and round the final answer to two decimal places.fill in the blank 4 % 4. ROI measures a company’s ability to generate relative to its investment in assets. The greater the ROI, the efficiently the company is generating from its assets. 5.…
Required Information of 15 The following information applies to the questions displayed below] Westerville Company reported the following results from last year's operations: $2,300,000 Sales Variable expenses Contribution margin Fixed expenses 1,630, 000 24 460,000 $41,437,500 Net operating income erInt Average operating assets At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 460,000 se% of sales $ 161,000 The company's minimum required rate of return is 15%. Required: 1 What is last year's margin? Prev 15 of 15 Nex てし Type here to search ye. 近 (6) F4 F5 F7 F8
Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the following income statement for the last year: Sales $865,050,000 Less: Variable expenses 550,973,000 Contribution margin $314,077,000 Less: Fixed expenses 192,762,000 Operating income $121,315,000 At the beginning of last year, Elway had $38,661,000 in operating assets. At the end of the year, Elway had $41,350,000 in operating assets. Required: 1. Compute average operating assets.$fill in the blank 1 2. Compute the margin (as a percent) and turnover ratios for last year. If required, round your answers to two decimal places. Margin fill in the blank 2 % Turnover fill in the blank 3 3. Compute ROI as a percent. Use the part 2 final answers in these calculations and round the final answer to two decimal places.fill in the blank 4 % 4. ROI measures a company’s ability to generate relative to its investment in assets. The greater the ROI, the efficiently the company…
Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the following income statement for the last year: Sales $879,510,000 Less: Variable expenses 558,460,000 Contribution margin $321,050,000 Less: Fixed expenses 198,790,000 Operating income $122,260,000 At the beginning of last year, Elway had $38,636,000 in operating assets. At the end of the year, Elway had $41,336,000 in operating assets. Required: 1. Compute average operating assets.$ 2. Compute the margin (as a percent) and turnover ratios for last year. If required, round your answers to two decimal places. Margin % Turnover 3. Compute ROI as a percent. Use the part 2 final answers in these calculations and round the final answer to two decimal places. % 4. ROI measures a company’s ability to generate relative to its investment in assets. The greater the ROI, the efficiently the company is generating from its assets. 5. CONCEPTUAL CONNECTION Comment on why the ROI…
Requlred Informetion The following information applies to the questions displayed below] Westerville Company reported the following results from last year's operations: $ 2,300,000 Variable expenses Contribution margin Fixed expenses 1,170,000 Net operating income 460,000 Average operating assets $ 1,437,500 At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics: Contribution margin ratio Fixed expenses $ 460,000 50% of sales The company's minimum required rate of return is 15%. 12. What is the residual income of this year's investment opportunity? ere to search 近。 F4 F5 F7 Eゴ 8日て」 %23 #3 $ 4. 5. 7.
Provide the missing data in the following tabulation: Division Alpha Bravo Charlie Revenue 11500000 Operating profit 920000 210000 Average operating assets 800000 Margin 4,00% 7,00% Turnover 5 Return on investment (ROI) 20% 14%
i Requlred Informatlon The following information applies to the questions displayed below] Westerville Company reported the following results from last year's operations: $ 2,300,000 Contribution margin Fixed expenses 1,170,000 Net operating income Average operating assets S1,437,500 At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics: Sales $ 460,000 50% of sales Contribution margin ratio Fixed expenses, $ 161,000 The company's minimum required rate of return is 15%. 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.) < Prev Next 15. here to search, 近。 F4 F5 F7 F8 F12 $ & V 4.
請 RequIred Informatlon (The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: $ 2,300,00e Sales Variable expenses Contribution margin Fixed expenses 000 1,630,000 Net operating income Average operating assets $ 1,437,500 At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses. 000 50% of sales $161,000 The company's minimum required rate of return is 15%. 11. What is last year's residual income? Residual income, < Prev 11 12 13 of 15 Nex to search 近