Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I jeed the answer very fast , I dont have a lot of time please help L Click Submit to complete this assessment. Question 1

I jeed the answer very fast , I dont have a lot of time please help
image text in transcribed
image text in transcribed
L Click Submit to complete this assessment. Question 1 Zain Company provides business to business services on the intemet. Data concerning the most recent year appear below Sales $1200,000 Net Operating Income $250,000 Average Operating Assets $750,000 Required Retum on Investment 18% Required: Consider each question below independently. Carry out all computation to two decimal places a Compute the Company's Margin. Tumover Return on Investment (ROI) and Residual Income (RI) b The company management is considering disinvestment (decrease in investment) of $80,000 the management expect that there will no affect on net operating income a other securities Would the company's disinvestment decision to be in the best interests of the company? Why? a. The entrepreneur who founded the company is convinced that sales wet increase by 40% and the net operating income will increase 50%, with no increase in average o Rot and Residual Income (Rh? d The chief financial officer of the company belleves a more realistic scenario would be 400 000 increases in sales requiring a 125,000 increase in average operating ass operating income What would be the company's ROI and Rl in this scenario? Spaints Saved to be on the Wome Data con the most recent year below $1.200.000 3250.000 Average Operating 570.000 Required fuum on investment ta de Canyupution to become Mare Tumewe Butun ceneand Resincome (2) com desenate of the management expect that there will offect on net operating income and company want to utilize this 30000 in buying the companys de decision to be in the best news of the company Why? ned the con comed the sales will increase by 10% and the neoperating income will increase 60%, with increase in average operating and What would be the company's w the company believes a more would be 400.000 ore is requiring a 125,000 increase in average operating assets, with a resulting 40% increase in net be company's Roland this caro? in ALTINF10 Mad on ope I XO QSE les 1 L Click Submit to complete this assessment. Question 1 Zain Company provides business to business services on the intemet. Data concerning the most recent year appear below Sales $1200,000 Net Operating Income $250,000 Average Operating Assets $750,000 Required Retum on Investment 18% Required: Consider each question below independently. Carry out all computation to two decimal places a Compute the Company's Margin. Tumover Return on Investment (ROI) and Residual Income (RI) b The company management is considering disinvestment (decrease in investment) of $80,000 the management expect that there will no affect on net operating income a other securities Would the company's disinvestment decision to be in the best interests of the company? Why? a. The entrepreneur who founded the company is convinced that sales wet increase by 40% and the net operating income will increase 50%, with no increase in average o Rot and Residual Income (Rh? d The chief financial officer of the company belleves a more realistic scenario would be 400 000 increases in sales requiring a 125,000 increase in average operating ass operating income What would be the company's ROI and Rl in this scenario? Spaints Saved to be on the Wome Data con the most recent year below $1.200.000 3250.000 Average Operating 570.000 Required fuum on investment ta de Canyupution to become Mare Tumewe Butun ceneand Resincome (2) com desenate of the management expect that there will offect on net operating income and company want to utilize this 30000 in buying the companys de decision to be in the best news of the company Why? ned the con comed the sales will increase by 10% and the neoperating income will increase 60%, with increase in average operating and What would be the company's w the company believes a more would be 400.000 ore is requiring a 125,000 increase in average operating assets, with a resulting 40% increase in net be company's Roland this caro? in ALTINF10 Mad on ope I XO QSE les 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Islamic Finance

Authors: Karen Hunt-Ahmed

1st Edition

1118180909, 978-1118180907

More Books

Students also viewed these Finance questions

Question

8. Demonstrate aspects of assessing group performance

Answered: 1 week ago