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I have some cost accounting questions. I have the answers to most of them. I need you to show me how to work the problems.
I have some cost accounting questions. I have the answers to most of them. I need you to show me how to work the problems.
BusServ.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales Net operating income Average operating assets . $ 8,000,000 $ 800,000 $ 3,200,000 The entrepreneur who founded the company is convinced that sales will increase next year by 150% and that net operating income will increase by 400%, with no increase in average operating assets. What would be the company's ROI? (Do not round intermediate calculations. Omit the "%" sign in your response.) ROI % ask your instructor a questioncheck my workeBook Linkreferences 6. value: 10.00 points 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $2 million increase in sales, requiring an $800,000 increase in average operating assets, with a resulting $250,000 increase in net operating income. What would be the company's ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.) ROI % The following data pertain to the Whalen Division of Northern Industries. The margin at Whalen was exactly the same in Year 2 as it was in Year 1. 63. The return on investment in Year 1 was: A. 48.00% B. 32.50% C. 7.58% D. 1.92% A 64. The minimum required rate of return in Year 1 was: A. 18% B. 17% C. 16% D. 15% C 28. In August, the Universal Solutions Division of Jugan Corporation had average operating assets of $670,000 and net operating income of $77,500. The company uses residual income, with a minimum required rate of return of 12%, to evaluate the performance of its divisions. What was the Universal Solutions Division's residual income in August? A. $2,900 B. -$2,900 C. -$9,300 D. $9,300 B 29. Division B had an ROI last year of 15%. The division's minimum required rate of return is 10%. If the division's average operating assets last year were $450,000, then the division's residual income for last year was: A. $67,500 B. $22,500 C. $37,500 D. $45,000 B Aide Industries is a division of a major corporation. Data concerning the most recent year appears below: 39. The margin in Year 2 was: A. 48% B. 32% C. 20% D. 10% C The Baily Division recorded operating data as follows for the past two years: Baily Division's turnover was exactly the same in both Year 1 and Year 2. 59. The average operating assets in Year 2 were: A. $720,000 B. $750,000 C. $800,000 D. $900,000 C The Reed Division reports the following operating data for the past two years: The return on investment at Reed was exactly the same in Year 1 and Year 2. 39. The margin in Year 2 was: A. 48% B. 32% C. 20% D. 10% c 40. Sales in Year 2 amounted to: A. $250,000 B. $300,000 C. $325,000 D. $350,000 b 41. Average operating assets in Year 1 were: A. $160,000 B. $150,000 C. $125,000 D. $100,000 D 42. Net operating income in Year 2 amounted to: A. $60,000 B. $50,000 C. $40,000 D. $35,000 AStep by Step Solution
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