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Question Jackson is a private company whose management accountant team is evaluating the performance of its investment centre. The company manufactures phones. So it is

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Question 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 AC Receivable S43.000 Inventory $ 27,900 Non Operating Asset S 128,900 Accumulated Depreciation S 7.500 Operating Expenses Supplies expense Utilities Expense Depreciation Expense Rent expense Training expenses Revenue Uncamed Revenue COGS Interest on debt S 14500 8.750 7200 9,200 6700 106,200 24.000 31.000 8.39 Risk free Rate 4.5% Cost of debt 7.3% Market return Market Risk 1.2 OA in Jan 2020 $210,000 Tax Rate 17% Note : Company uses gross PPE (including accumulated Depreciation] 5. 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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