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1. Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska.

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1. Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales $ 17,900,090 Net operating income $ 5,900,000 Average operating assets $ 35, 600,090 Required: 1. Compute the margin for Alyeska Services Company. (Round your answer to 2 decimal places.) 2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.) 3. Compute the return on investment (ROI) for Alyeska Services Company. (Round your intermediate calculations and final answer to 2 decimal places.) 1. Margin % 2. Turnover 3. ROI 2. Juniper Design Limited of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of $460,000 on sales of $1,900,000. The company's average operating assets for the year were $2,100,000 and Its minimum required rate of return was 11%. Required: Compute the company's residual income for the year. Residual income3. Provide the missing data in the following table for a distributor of martial arts products: (Round "Turnover" and "ROI" answers to 1 decimal place.) Alpha Division Bravo Division Charlie Division Sales $ 317,500 Net operating income $ 38,100 S 59,620 Average operating assets 5 364.000 Margin 6 % 11 % Turnover 5.0 Return on investment (ROI) % 30.0 % 22.04. Meiji Isetan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 9,700,030 $ 27,080,080 Net operating income $ 776,000 $ 2,700,003 Average operating assets $ 2,425,090 $ 13,500,030 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 17%. Compute the residual income for each division. 3. Is Yokohama's greater amount of residual income an indication that it is better managed? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For each division, compute the return on investment (ROI) in terms of margin and turnover. Osaka Yokohama ROI 9% % Required 1 Required 2 > Required 1 Required 2 Required 3 Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 17%. Compute the residual income for each division. Osaka Yokohama Residual income Required 1 Required 2 Required 3 Is Yokohama's greater amount of residual income an indication that it is better managed? Yes No5. Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $ 12, 690,090 $ 14, 805,090 $ 26,437, 500 Average operating assets $ 3,172, 500 $ 7,402,500 $ 5, 287, 560 Net operating income $ 634,500 $ 592, 200 $ 846,000 Minimum required rate of return 14% 10% 16% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 1 decimal place.) Margin Turnover ROI Division A Division B Division CReq 1 Reg 2 Reg 3A Req 3B Compute the residual income (loss) for each division. (Do not round intermediate calculations. Loss amounts should be indicated by a minus sign.) Division A Division B Division C Residual income (loss)Req 1 Req 2 Req 3A Req 33 Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. If performance is being measured by R01, which division or divisions will probably accept or reject the opportunity? _ _ Req 1 Req 2 Req 3A 1 Req 38 i Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Division B _ __

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