Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help with the following help please 1.Posters.com is a small Internet retailer fComparative data on three companies in the same service industry are given

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

please help with the following

help

please

1.Posters.com is a small Internet retailer

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
\fComparative data on three companies in the same service industry are given below: Required: 2. Fill in the missing information. (Round the "Turnover" and "ROI" answers to 2 decimal places.) Company A B C Sales $ 5.451,000 3 1,778.000 Net operating income 981 180 268,700 Average operating assets $ 2.370.000 $ 2.540.000 Margin 96 4 9% Turnover 2.30 Retum on investment (ROI) 96 10.50 96 96\fRequired 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 At the beginning of the year, obsolete inventory carried on the books at a cost of $17,000 is scrapped and written off as a loss. (Round your intermediate calculations and final answers to 2 decimal places.) Effect Margin Turnover ROI1. Average operating assets 2. Margin Turnover ROI 3. Residual income\fThe comribution format income statementfor Huerra Company for last year is given below: \"total unit sales 3 990,090 3 9.50 'u'ariable expenses 594:090 H.110 Contribution margin 395,000 19.30 Fined emenses 314 000 15.?0 Net operating income 1521000 4.10 Income taxes 3 m '52 330 1.54 Net income 3 491200 $ 2.645. I The company had average operating assets of $400000 during the year. Requlred: 1. Compute The company's return on investment {ROli for the period using the ROI formula stated in terms of margin and tumorver. For each of The following questions. indicate whether the margin and turnover will in crease. decrease. or remain unchanged as a result ofthe events described. and then compute the new ROI gure. Consider each question separately. starting in each case from the data used to compute the original ROI in {1} above. 1 Using Lean Production. the company is able to reduce The average level of inventory by $04000. {The released funds are used to pay off short-te rm creditors] 3. The company achieves a cost savings of$.000 per year by using less costly materials. 4. The company issues bonds and uses The proceeds to purchase machinery and equipment that increases average operating assets by $122000. Interest on the bonds is 3515.000 per year. Sales remain unchanged. The new. more efcient equipment reduces production costs by $4.000 per year. 5. As a result ofa more intense effort by salespeople. sales are increased by 20%; operating assets remain unchanged. I5. At the beginning ofThe year. obsolete inventory carried on the books at a cost of $11000 is scrapped and written offas a loss. I At the beginning of the year. the company uses $330000 of cash {received on accounts receivable: to repurchase and retire some ofits comm on stock. \fDataSpan, lnc., automated its plant at the start of the current year and installed a exibie manufacturing system. The company is also evaluating Its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems reiating to performance measurement. After much study, the company has decided to use the performance measures below, and It has gathered data relating to these measures for the rst four months of operations. truth 1 2 3" 4 Throughput time (days) 3" P 3 ? Delivery cycle time (days) 1' P 3 2' Manufacturing cycle efficiency (MCE) .3 ? .3 ? Percentage o-F on-tirle deliveries 33% 33% 339E WEE Total sales (units) 2333 2TB? 25?3 2433 Management has asked for your help in computing throughout time, delivery cycle time, and MCE. The following average times have been logged over the iast four months: Averagg E Month Sin 11m! 1. .2, 3- 4 Move time per unit 8.9 3.6 3.? 8.? Process tirle per unit 3.3 3.6 3.4- 3.2 Hait time per order before start of production 13.3 19.? 22.3 23.3 Queue time per unit 4.5 5.1 5.3 6.6 Inspection time per unit 8.3 1.3 1.3 3.3 l Required: 1-a. Compute the throughput time for each month. 1D. Compute the delivery cycle time for each month. i-c. Compute the manufacturing cycie efciency {NICE} for each month. 2 Evaluate the company's performance over the last four months. 3a. Refer to the move time, process time, and so forth, given for month 4. Assume that In month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company Is able to completeiy eliminate the queue time during production. Compute the new throughput time and MCE 343. Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE. Complete-this question Inf entering wu-ansmrs' in letahs below.

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

Managerial Accounting

Authors: Charles E. Davis, Elizabeth Davis

2nd edition

1118548639, 9781118800713, 1118338448, 9781118548639, 1118800710, 978-1118338445

Students also viewed these Accounting questions

Question

Prepare a work breakdown structure (WBS) for a homecoming dance.

Answered: 1 week ago

Question

What is quality of work life ?

Answered: 1 week ago

Question

What is meant by Career Planning and development ?

Answered: 1 week ago

Question

What are Fringe Benefits ? List out some.

Answered: 1 week ago