Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with these thank you Required Information Required Information Exercise 11-12 (Algo) Effects of Changes in Profits and Assets on Return on Investment

I need help with these thank you

image text in transcribed
Required Information Required Information Exercise 11-12 (Algo) Effects of Changes in Profits and Assets on Return on Investment (ROI) [LO11-1] Exercise 11-12 (Algo) Effects of Changes in Profits and Assets on Return on Investment (ROI) [LO11-1] The following information applies to the questions displayed below.] The following Information applies to the questions displayed below.] Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make Investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year: results for the past year. Net operating income $ 180, 090 Net operating income Average operating assets $ 100 , 000 Average operating assets $ 100 ,080 The following questions are to be considered independently The following questions are to be considered independently. Exercise 11-12 Part 4 (Algo) Exercise 11-12 Part 1 (Algo) 4. Assume that the manager of the club is able to reduce average operating assets by $20,000 without any change in sales or net Required: at would be the club's return on investment (ROI)? (Do not round Intermediate calculations. Round 1. Compute the Springfield club's return on investment (ROI). (Do not round Intermed calculations. Round your answer to 2 to 2 decimal places.) decimal places.) eturn on investment (RO % eturn on investment (RO Required Information Exercise 11-12 (Algo) Effects of Changes in Profits and Assets on Return on Investment (ROI) [LO11-1] [The following Information applies to the questions displayed below.] Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following Exercise 11-9 (Algo) Return on Investment (ROI) and Residual Income Relations [LO11-1, LO11-2] results for the past year: A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector Sales 780,00 Net operating income $ 17 , 940 stry Supply the missing data in the table below. (Loss amounts should be Indicated by a minus sign. Round your percentage answers to nearest whole percent.) Average operating assets The following questions are to be considered independently. Company ed A Sales $ 9,060,000 7.100,000 $ 4,590,000 Exercise 11-12 Part 2 (Algo) Net operating income 285,000 Average operating assets $ 3,020,000 $ 1,836,000 2. Assume that the manager of the club is able to Increase sales by $78,000 and that, as a result, net operating income Increases by Return on investment (ROI) 20 % $6,084. Further assume that this is possible without any increase in average operating assets. What would be the club's return on Minimum required rate of return : estment (ROI)? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Percentage % Dollar amour $ 332,500 Residual income 91,800 Required Information Exercise 11-12 (Algo) Effects of Changes in Profits and Assets on Return on Investment (ROI) [LO11-1] [The following information applies to the questions displayed below.] Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year: Sales 780,600 Net operating income Average operating assets The following questions are to be considered independently. Exercise 11-12 Part 3 (Algo) 3. Assume that the manager of the club is able to reduce expenses by $3,120 without any change in sales or average operating assets. What would be the club's return on investment (ROI)? (Do not round Intermediate calculations. Round your answer to 2 decimal places.)

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

Financial Accounting

Authors: Carl S Warren, James M Reeve, Jonathan Duchac

12th Edition

0538478519, 9780538478519

More Books

Students also viewed these Accounting questions