Calculating Return on Investment (ROI) and Residual Income using Excel's IF and Basic Math Functions Adams Corporation evoluotes divisional managers based on Return on investment (ROI) and has provided the operating results of the Northern Division from last year. 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. From the Excel Simolation below. if in a blank cell -65was entered the formula would output the result from cell G5, or 400 in this example, 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), fosterisk sign to multiply, ond / (forward slosh to dwide) From the Excel Simulation below, if in a blank cell G5+G6 was entered the formule would add the values from those cells and output the result of 10.00 in this example. 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 at the values You can add individual cell references or ranges to utilize this function. From the Excel Simulation below, if in a blank coll -SUM[G5 G6 G7) was entered the formula would output the result of adding those three separate cells of 12.00 in this example Simiony, it in a blank cell-SUMGSG7) was entered the formula would output the same result of adding those cells, except they are expressed as a range in the formule, and the result would be 12.00 in this example .F function: Allows you to test a condition and return a specific value is the result is true and different value if the result is false. The syntax of the IF function is fitest. condition value. Il true values and specific considerations need to be made when using this function The text_condition argument is an evaluation of the status of a cll, such as if the value of a cellis greater than less than or equal to another number or cellThe valve_il_true and value is arguments will return any specific result for each option, such as another colleforence Value of text. Throughout the entire equation if text is being used in the test condition value_true, or value_lraise arguments then the text itse should be entered in quotations so that Excel will recognize the text as a string of toxt" instead of another function. From the Excel Simulation below, it in a blank cel=F(G10-20. "Total cost is High Total cost in low was entered the fomula would output the result of the value since the test.condition would be result as true or in this case the text Total cost is high" Excel processes the IF function by separating it out into separate ports First the cost condition - Excelinks, Mind cell Glow determine the value is greater than 20 Once Excel letenines if the result of that test_conditions TRUE OR FALSE, it will return the value of weitos 20 El este cordestCOM ISIRUE FALSE will return the value_true or valuedise. ? 5 X Return on investment (RON) and Residual income - Excel PAGE LAYOUT FORMULAS DATA REVIEW VIEW FILE HOME INSERT Sign in X Calibri 111 AA %6 Paste BLU- A- Cells Editing Alignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Tont A1 A 4 5 6 Adams Corporation evaluates divisional managers based on ROI. Operating B D F Adams Corporation evaluates divisional managers based on ROI. Operating results for the 2 company's Northern Division for last year are given below: 3 D Sales s 27,000,000 Variable expenses 16,200,000 Contribution margin 10,800,000 7 Fixed expenses 8.805.000 Net operating income 1.995.000 Average divisional operating assets 9.500.000 12 The Northern Division has an opportunity to add a new product line at the beginning of the year as follows: Average required investment $ 2.500,000 Net operating income 400,000 16 17 Adams Corporation's minimum acceptable rate of return 159 8 9 10 11 - 5 X 11 - Paste Font Return on investment (ROI) and Residual income - Excel ? FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In X Cabbri A A % BIU - A Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles Clipboard Styles A1 Adams Corporation evaluates divisional managers based on ROI. Operating B D E F 15 Net operating income S 400,000 16 17 Adams Corporation's minimum acceptable rate of return 15% 18 19 Assuming the company accepts all projects that meet or exceed the minimum rate of return, compute the following: 20 21 Northern Division Rol for last year A . 23. Northern Division Rorit new product line is added 24 25 Write an if statement to determine whether the Northern Division 26 manager will ACCEPT OF REJECT the new product line based on ROI 27 28 Northern Division residual income for last year 29 30 Northern Division residual income if the new product line is added 31 32 Write an F statement to determine whether the Northern Division manager