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Please post the answers with proper explanation and conditions. Jackson a private company wiose management accountant teams evaluating the performance of its investment centre. The

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Jackson a private company wiose management accountant teams evaluating the performance of its investment centre. The company manufactures phones. So it is using different measures recommended to look at its success or failure. The tests he wants to carry out are the following using the table below: December 2020 financial information Current liabilities (non interest bearing) $ 56,700 Bond payable $ 105,600 Equity $ 250,000 Cash $ 55,000 A/C Receivable $43,000 Inventory $27.900 Non Operating Asset $ 128,900 Accumulated Depreciation $ 7,500 Operating Expenses Supplies expense 14500 Utilities Expense 8.750 Depreciation Expense 7200 Rent expense 9.200 Training expenses 6700 Revenue 106.200 Uneamed Revenue 24.000 COGS 31,000 interest on debt 8.5% Risk free Rate 4.59 Cost of debt 7.39 Market return 9.4% Market Risk 1.2 OA in Jan 2020 $210,000 Tax Rate 1796 Note: Company uses gross PPE (including accumulated Depreciation REQU RED 6. Use the component method to calculate RO and indicate which component contributed most (Profitability or efficiency Calculate Residual income IR 3. What is the main difference in calculating Roland RI 9. What is a main disadvantages of both RO and Question 1 Jackson is a private company whose management accountant team is evaluating the performance of its investment centre. The company manufactures phones. So it is using different measures recommended to look at its success or failure. The tests he wants to carry out are the following using the table below: December 2020 financial information Current liabilities (non interest S 56,700 bearing) Bond payable S 105,600 Equity S 250,000 Cash S 55.000 A/C Receivable $ 43,000 Inventory $ 27.900 Non Operating Asset $ 128,900 Accumulated Depreciation S 7.500 Operating Expenses Supplies expense Utilities Expense Depreciation Expense Rent expense Training expenses Revenue Uncamned Revenue COGS Interest on debt S 14500 8,750 7200 9.200 6700 106.200 24.000 31.000 8.5% Risk free Rate 4.5% Cost of debt 7.3% Market return 9.4% Market Risk 1.2 OA in Jan 2020 $210.000 Tax Rate 17% Note: Company uses gross PPE [including accumulated Depreciation] REQUIRED 1. Calculate interest expense, net income tax and EBIT [operating income) 2. Calculate the gross PPE (Plant, Property & Equipment] 3. Calculate cost of equity (re). 4. What is the average operating asset $. What is the ROI (return on investment of the company? 6. Use two component method to calculate ROI and indicate which component contributed most [Profitability or efficiency) 7. Calculate Residual Income (RI 8. What is the main difference in calculating ROI and RI? 9. What is the main disadvantages of both ROI and RI

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