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Please do not answer by handwriting I will upvote it if your answer meets my requirements, thank you Dragon LTD is a private company whose

Please do not answer by handwriting
I will upvote it if your answer meets my requirements, thank you
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Dragon LTD is a private company whose management accountant is analyzing the performance of its investment centre using Return on Investment and Residual income methods. So it is trying to look at different components that are distributing to its success. The tests he wants to carry out are based on the following information presented on the table below: Current liabilities Notes payable Current assets (75% core assets) Long-term assets Accumulated Depreciation Land for speculation Other non-operating assets Tax rate Prepaid expense Beginning Inventory Cost of goods manufactured Ending Inventory Sales Risk free rate Index in January 2021 Index in December 2021 Beta Operating Expenses Accrued expense Interest on debt Beginning operating assets REQUIRED s 24,500 55,600 74,000 95,000 8,000 15.000 4.000 24% 57.600 S 1.000 $ 13,000 S 2.000 S 26200 3% 15,200 16,500 1.5 9780 15,000 6% S145,000 5. Using Du Pont analysis, calculate the ROI of the company 6. What are the disadvantages of using Retum on Investment. 7. Calculate the cost of equity. 8. What is the residual income of this investment centre

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