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E10-7 (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] Kaler

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E10-7 (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] Kaler Company has sales of $1,570,000, cost of goods sold of $825,000, other operating expenses of $238,000, average invested assets of $5,200,000, and a hurdle rate of 12 percent. Required: 1. Determine Kaler's retum on investment (ROI), investment turnover, profit margin, and residual income 2. Several possible changes Kaler could face in the upcoming year follow Determine each scenano's impact on Kaler's ROI and residual income. (Note. Treat each scenario independently) a. Company sales and cost of goods sold increase by 15 percent. b. Operating expenses increase by $91,000 c. Operating expenses decrease by 20 percent. d. Average invested assets decrease by $465,000 e. Kaler changes its hurdle rate to 9 percent. Complete this question by entering your answers in the tabs below. Determine Kaler's return on investment (ROI), investment turnover, profit margin, and residual income: Note: Do not round your intermediate calculations. Enter your Rol, and Protit Margin answers to 2 decimal places (1., e, 0.1234 should be entered as 12.34\%), Round your Investment Turnover answer to 4 decimal places toss amount should be indicated With a minus sign E10-7 (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] Kaler Company has sales of $1,570,000, cost of goods sold of $825,000, other operating expenses of $238,000, average invested assets of $5,200,000, and a hurdle rate of 12 percent Required: 1. Determine Kaler's return on investment (ROi), investment turnover, profit margin, and residual income. 2. Severat possible changes Kaler could face in the upcoming year follow. Determine each scenario's impact on Kaler's ROI and residual income. (Note: Treat each scenario independently) a. Company sales and cost of goods sold increase by 15 percent b. Operating expenses increase by $91,000 c. Operating expenses decrease by 20 percent d. Average invested assets decrease by $465,000 e. Koler changes its hurdle rate to 9 percent. Complete this question by entering your answers in the tabs below. Several possible changes Kaler could face in the upcoming year follow. Determine each scenario's impact on Kaler's RO1 and residual income. (Note: Treat each scenario independently.) Company sales and cost of goods sold increase by 15 percent. Note: Enter your Rol percentage answer to 2 decimal places, (1.e., 0.1234 should be entered as 1) 34\%.) 1 ocs amount should be indicated with a minus sign. E10-7 (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] Kaler Company has sales of $1,570,000, cost of goods sold of $825,000, other operating expenses of $238,000, average invested assets of $5,200,000, and a hurdle rate of 12 percent. Required: 1. Determine Kaler's return on investment (ROD), investment tumover, profit margin, and residual income 2. Several possible changes Kaler could face in the upcoming year follow. Determine each scenario's impact on Kaler's ROI and residual income. (Note: Treat each scenario independently.) a. Compary sales and cost of goods sold increase by 15 percent b. Operating expenses increase by $91,000 c. Operating expenses decrease by 20 percent d. Average invested assets decrease by $465,000 e. Kaler changes its hurdle rate to 9 percent Complete this question by entering your answers in the tabs below. Several possible changes that Kaler could face in the upcoming year follow. Determine each scenario's impact on Kaler's ROI and residual income. (Note: Treat each scenario independently.) Operating expenses increase by $91,000. Note: Enter yout ROI percentiase answer to 2 decimal places. (1.e., 0.1234 should be entered as 12.349.). Loss amount should be indicated with a minus sign. E10-7 (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] Kaler Company has sales of $1,570,000, cost of goods sold of $825,000, other operating expenses of $238,000, average invested assets of $5,200,000, and a hurdle rate of 12 percent. Required: 1. Determine Kaler's return on investment (RO), investment turnover, profit margin, and residual income 2. Several possible changes Kaler could face in the upcoming year follow. Determine each scenario's impact on Kaler's ROI and residual income. (Note: Treat each scenario independently) a. Company sales and cost of goods sold increase by 15 percent b. Operating expenses increase by $91,000 c. Operating expenses decrease by 20 percent d. Average invested assets decrease by $465,000 e. Kaler changes its hurdie rate to 9 percent. Complete this question by entering your answers in the tabs below. Several possible changes that Kaler could face in the upcoming year follow. Determine each scenario's impact on Kaler's ROI and residual incorne. (Note: Treat each scenario independently.) Operating expenses decrease by 20 percent. Note: Enter your ROI percentage answer to 2 decimal places, (N,e, 0.1234 should be entered as 12.34%.), Loss amount should be indicated with a minus sign. E10-7 (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] Kaler Company has sales of $1,570,000, cost of goods sold of $825,000, other operating expenses of $238.000, average invested assets of $5,200,000, and a hurdle rate of 12 percent Required: 1. Determine Kaler's return on investment (ROI), investment turnover, profit margin, and residual income 2. Several possible changes Kaler could face in the upcoming year follow Determine each scenario's impact on Kaler's ROI and residual income (Note. Treat each scenano independently) a. Company soles and cost of goods sold increase by 15 percent b. Operating expenses increase by $91,000 c. Operating expenses decrease by 20 percent d. Average invested assets decrease by $465,000 e. Kaler changes its hurdle rote to 9 percent Complete this question by entering your answers in the tabs below. Several possible changes that Kaler could face in the upcorning year follow. Determine each scenario's impact on Kaler's ROI and residual incorne. (Note: Treat each scenario independently.) Average invested assets decrease by $465,000. Note: Enter your Rol percentoge answer to 2 dedmal places, (I.e., 0.1234 should be entered as 12.34\%.). Loss amount Should be indicated with a minus sign. E10-7 (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] Kaler Company has sales of $1,570,000, cost of goods sold of $825,000, other operating expenses of $238,000, average invested assets of $5,200,000, and a hurdle rate of 12 percent. Required: 1. Determine Kaler's return on investment (RO), investment turnover, profit margin, and residual income. 2. Several possible changes Kaler could face in the upcoming year follow. Determine each scenario's impact on Kaler's ROI and tesidual income. (Note: Treat each scenario independently) a. Company sales and cost of goods sold increase by 15 percent. b. Operating expenses increase by $91,000 c. Operating expenses decrease by 20 percent d. Average invested assets decrease by $465,000. e. Kaler changes its hurdle rate to 9 percent. Complete this question by entering your answers in the tabs below. Several possible changes that Kaler could face in the upcoming year follow. Determine each scenario's impact on Kaler's ROI and residual income. (Note: Treat each scenario independently.) Kaler changes its hurdle rate to 9 percent. Note: Enter your RoI percentage answer to 2 decimal places, (1.e., 0.1234 should be entered as 12.34%.)

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