Essendon Pty Limited manufactures guidance systems Sierockets that we commercial satellites. The company's Software Business Division reported the following data Sales revenue Sales $110.000 Cost of goods sold S1.200.000 S550 Totalt at yow beginning SI Total assets a year-end $1.000 Total current liabilities at your beginning $55.000 Total current liabilities at year-end The company's required rate of return is 8.75 percent. Additional informatie The total assets a year-end include a piece of vacant land valued at $320.000.is identified as a productive by the peale management The divisional manager manages all content liabilities . The use of average balances is recommended In an attempt to improve its retum de investment (RON). Essende company is planning to speed up the collection of all account receivables by 570,000 write-off and discard $57,000 of obsolete inventory . per a competition for teams of local universitesi'ndents to design and build small satellite with budget up to $130,000 Required: a. Cakulate the Software Business Division's Return on investment (RO) and residual income (RI). Discuss the results from your calculation Nose: Textbook Chapter 13 "Learning objective 13.5 Measuring pregled capital will be a good guide to define profit and invested capital in the Road calculations Explain should the above plans be adopted in order to improve its Rol for Software a. Calculate the Software Business Division's return on investment (ROI) and residual income (RI). Discuss the results from your calculations. Note: Textbook Chapter 13 Learning objective 13.5-Measuring Profit and Invested capital" will be a good guide to define profit and invested capital in the ROI and RI calculations b. Explain should the above plans be adopted in order to improve its ROI for Software Business Division? c. If profit and sales remain the same in the coming year, but the investment turnover increases to 0.92, calculate the new ROI? Essendon Pty Limited manufactures guidance systems Sierockets that we commercial satellites. The company's Software Business Division reported the following data Sales revenue Sales $110.000 Cost of goods sold S1.200.000 S550 Totalt at yow beginning SI Total assets a year-end $1.000 Total current liabilities at your beginning $55.000 Total current liabilities at year-end The company's required rate of return is 8.75 percent. Additional informatie The total assets a year-end include a piece of vacant land valued at $320.000.is identified as a productive by the peale management The divisional manager manages all content liabilities . The use of average balances is recommended In an attempt to improve its retum de investment (RON). Essende company is planning to speed up the collection of all account receivables by 570,000 write-off and discard $57,000 of obsolete inventory . per a competition for teams of local universitesi'ndents to design and build small satellite with budget up to $130,000 Required: a. Cakulate the Software Business Division's Return on investment (RO) and residual income (RI). Discuss the results from your calculation Nose: Textbook Chapter 13 "Learning objective 13.5 Measuring pregled capital will be a good guide to define profit and invested capital in the Road calculations Explain should the above plans be adopted in order to improve its Rol for Software a. Calculate the Software Business Division's return on investment (ROI) and residual income (RI). Discuss the results from your calculations. Note: Textbook Chapter 13 Learning objective 13.5-Measuring Profit and Invested capital" will be a good guide to define profit and invested capital in the ROI and RI calculations b. Explain should the above plans be adopted in order to improve its ROI for Software Business Division? c. If profit and sales remain the same in the coming year, but the investment turnover increases to 0.92, calculate the new ROI
