E$10-6($Algo$)$ Calculating Return on Investment, Residual Income, Determining Effect of Changes in Sales, Expenses, Invested Assets, Hurdle Rate on Each $[$LO $10-4,10-5]$

Solano Company has sales of $$640,000,$ cost of goods sold of $$440,000,$ other operating expenses of $$52,000,$ average Invested assets of $$1,950,000,$ and a hurdle rate of $10$ percent.

Requlred:

Determine Solano's return on Investment $($ ROI $),$ Investment turnover, profit margin, and residual Income.

Several possible changes that Solano could face in the upcoming year follow. Determine each scenarlo's Impact on Solano's ROI and residual income. $($Note: Treat each scenario independently.$)$

a$.$ Company sales and cost of goods sold Increase by $40$ percent.

b$.$ Operating expenses decrease by $$16,500.$

c$.$ Operating expenses Increase by $20$ percent.

d$.$ Average invested assets increase by $$370,000.$

e$.$ Solano changes its hurdle rate to $16$ percent.

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2A$

Req $2B$

Req $2C$

Req $2$D

Req $2$E

Determine Solano's return on investment $($ROI$),$ investment turnover, profit margin, and residual income. $($Loss amounts should be indicated with a minus sign. Do not round your intermediate calculations. Enter your ROI and Profit Margin percentage answer to the nearest $2$ decimal places, $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}34\%).$ Round your Investment Turnover answer to $4$ decimal places.$)$

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