Adams Corporation evaluates divisional managers based on Return on Investment (ROI) and has provided the operating results of the Northern Division from last yeat. The Controller has asked you to compute the ROI and Residual Income based on data from last year and if the division adds a new product line. Use the information Included in the Excel Simulation and the Excel functions described below to complete the task. - Cell Reference: Allows you to refer to data from another cell in the worksheet. - Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: + (plus sign to add). - (minus sign to subtract). "(asterisk sign to multiply), and / (forward slash to divide). If using the other math symbols the result would output an appropriate answer for its function. - SUM function: Allows you to refer to multiple cells and adds all the vaiues. You can add individual cell references or ranges to utilize this function. - If function: Allows you to test a condition and return a specific value if the result is true and different value if the result is false. The syntax of the IF function is "=iF(test condition,value. It true.value. it. false)" and specific considerations need to be made when using this function. The test condition argument is an evaluation of the status of a cell, such as if the value of a cell is greater than, less than, or equal to another number or cell. The value_it true and value_it false arguments will return any specific result for each option, such as another cell reference. a value, or text. Throughout the entire equation, if text is being used in the test_condition, value_if true, or value_if false arguments then the text itself should be entered in quotations so that Excel will recognize the text as a "string of text" instead of another function. Once Excel determines if the result of that test_condition is TRUE or FALSE, it will return the value it_true or value_if false. Adams Corporation evaluates divisional managers based on ROI. Operating results for the company's Northern Division for last year are given below: 2 The Northem Division has an opportunity to add a new product line at the beginning of the year as follows: Al Adams Corporation's minimum acceptable rate of return 15% Compute the following: Northern Division ROI for last year Northern Division ROI if new product line is added Write an IF statement to determine whether the Northern Division manager will ACCEPT or REJECT the new product line based on ROI. Northern Division residual income for last year Northern Division residual income if the new product line is added Write an IF statement to determine whether the Northern Division manager will ACCEPT or REJECT the new product line based on residual income
