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Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below. ] Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Average Investment Center Sales Income Invested Assets Electronics $44,250,000 $3,363,000 $17,700,000 Sporting goods 24,660,000 2,466,000 13,700,000 Exercise 22-10 Computing return on investment and residual income; investing decision LO A1 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2. Assume a target income level of 10% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? 3. Assume the Electronics department is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? Return on Investment Choose Numerator: 1 Choose Denominator: Return on Investment S Return on Investment Electronics Sporting Goods Which department is most efficient at using assets to generate returns for the company? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume a target income level of 10% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? Investment Center Electronics Sporting Goods Net income Target net income Residual income Which department is most efficient at using assets to generate returns for the company? Complete this question by entering your answers In the tabs below. Assume the Electronics department is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity he accepted? Should the new investment opportunity be accepted? - Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below. J Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Average Investment Center Sales Income Invested Assets Electronics $44,250,000 $3,363,000 $17,700,000 Sporting goods 24,660,000 2,466,000 13,700,000 Exercise 22-11 Computing margin and turnover; department efficiency LO A2 Compute prot margin and investment turnover for each department. Which department generates the most net income per dollar of sales? Which department is most efficient at generating sales from average invested assets? Complete this question by entering your answers in the tabs below. Profit Margin Investment Turnover Compute profit margin for each department. Which department generates the most net income per dollar of sales? Profit Margin Choose Numerator: 1 Choose Denominator: Profit Margin Investment Profit Margin Center Electronics Sporting Goods Which department generates the most net income per dollar of sales? 1. Compute return on investment. 2. Compute profit margin. 3. Compute investment turnover for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute profit margin. (Enter your answers in millions.) Profit Margin Choose Numerator: 1 Choose Denominator: Profit Margin Investment Center Profit margin Beverage E Cheese 1. Compute return on investment. 2. Compute profit margin. 3. Compute investment turnover for the year. Complete this question by entering your answers In the tabs below. Compute investment turnover for the year. (Enter your answers in millions.) I -H -H ( Required 2 Required information Use the following information for the Exercises below. [ The following information applies to the questions displayed below. ] A food manufacturer reports the following for two of its divisions for a recent year. . . Beverage Cheese H millions) Division Division Invested assets, beginning $2,701 $4.494 Invested assets, ending 2,613 4.42% Sales 2,701 3.945 Operating income 369 654 Exercise 22-13 Residual income LO A1 Assume that each of the company's divisions has a required rate of return of7%. Compute residual income for each division. (Enter your answers in millions.) Targetedremm Residual income ZNet Co. is a webbased retail company. The company reports the following for the past year. Sales $ 9,286,666 Operating income 3,944,666 Average invested assets 23,266,666 The company's CEO believes that sales for next year will increase by 10%, and both profit margin (96) and the level of average invested assets will be the same as for the past year. 1. Compute return on investment for the past year. 2. Compute profit margin for the past year. 3. If the CEO's forecast is correct, what will return on investment equal for next year? 4. If the CEO's forecast is correct, what will investment turnover equal for next year? Complete thls question by entering your answers In the tabs below. ReqUirEd 1 - - - Compute return on investment for the past year. -= Returnionnvestmem -= Required 2 > ZNet Co. is a web-based retail company. The company reports the following for the past year. Sales $ 9,280, 000 Operating income 3, 944, 000 Average invested assets 23, 200, 000 The company's CEO believes that sales for next year will increase by 10%, and both profit margin (%) and the level of average invested assets will be the same as for the past year. 1. Compute return on investment for the past year. 2. Compute profit margin for the past year. 3. If the CEO's forecast is correct, what will return on investment equal for next year? 4. If the CEO's forecast is correct, what will investment turnover equal for next year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute profit margin for the past year. Profit Margin Choose Numerator: Choose Denominator: Profit Margin Profit margin ZNet Co. is a web-based retail company. The company reports the following for the past year. Sales $ 9, 280, 000 Operating income 3, 944, 000 Average invested assets 23, 200, 000 The company's CEO believes that sales for next year will increase by 10%, and both profit margin (%) and the level of average invested assets will be the same as for the past year. 1. Compute return on investment for the past year. 2. Compute profit margin for the past year. 3. If the CEO's forecast is correct, what will return on investment equal for next year? 4. If the CEO's forecast is correct, what will investment turnover equal for next year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 If the CEO's forecast is correct, what will return on investment equal for next y Return on Investment Choose Numerator: Choose Denominator: = Return on Investment = Return on investment ZNet Co. is a webbased retail company. The company reports the following for the past year. Sales $ 9,286,666 Operating income 3,944,666 Average invested assets 23,266,666 The company's CEO believes that sales for next year will increase by 10%. and both profit margin (%) and the level of average invested assets will be the same as for the past year. 1. Compute return on investment for the past year. 2. Compute profit margin for the past year. 3. If the CEO's forecast is correct, what will return on investment equal for next year? 4. If the CEO's forecast is correct, what will investment turnover equal for next year? Complete this question by entering your answers In the tabs below. Required 1 Required 2 Required 3 Required 4
