Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hi, please help me to complete all these 9 questions. Thank you so much! No handwrite please. Jackson is a private company whose management accountant
Hi, please help me to complete all these 9 questions. Thank you so much! No handwrite please.
Jackson is a private company whose management accountant team is evaluating the performance of its investment centre. The company manufactures phones. So it is using different measures recommended to look at its success or failure. The tests he wants to carry out are the following using the table below: $ 56,700 December 2020 financial information Current liabilities (non interest bearing) Bond payable Equity Cash A/C Receivable Inventory Non Operating Asset Accumulated Depreciation $ 105,600 $ 250,000 $ 55,000 $ 43,000 $ 27,900 $ 128,900 $ 7,500 Operating Expenses Supplies expense Utilities Expense Depreciation Expense Rent expense Training expenses Revenue Unearned Revenue COGS Interest on debt S 14500 8,750 7200 9,200 6700 106,200 24,000 31,000 8.5% Risk free Rate 4.5% Cost of debt 7.3% Market return 9.4% Market Risk 1.2 OA in Jan 2020 $210,000 Tax Rate 17% Note : Company uses gross PPE (including accumulated Depreciation] REQUIRED 1. Calculate interest expense, net income, tax and EBIT [operating income] 2. Calculate the gross PPE [Plant, Property & Equipment] 3. Calculate cost of equity [re). 4. What is the average operating asset 5. What is the ROI [return on investment] of the company? 6. Use two component method to calculate ROI and indicate which component contributed most [Profitability or efficiency] 7. Calculate Residual Income [RI ] 8. What is the main difference in calculating ROI and RI? 9. What is the main disadvantages of both ROI and RIStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started