Question
Requirement 1. Calculate the sales margin, capital turnover, and return on investment (ROI). First enter the formula, then calculate the sales margin. (1) / (2)
Requirement 1. Calculate the sales margin, capital turnover, and return on investment (ROI).
First enter the formula, then calculate the sales margin.
| (1) | / | (2) | = | Sales margin |
| ||||||
| / |
| = |
| % | |||||||
Next enter the formula, then calculate the capital turnover. (Round your answer to two decimal places.)
| (3) | / | (4) | = | Capital turnover |
| ||||||
| / |
| = |
| times | |||||||
Now enter the formula, then calculate the ROI.
| (5) | / | (6) | = | ROI | |||||||
| / |
| = |
| % | |||||||
Requirement 2. Calculate the residual income (RI).
Enter the formula, then calculate the residual income.
| (7) | - | ( | (8) | x | (9) | ) = | RI |
| ||||
| ( |
| x |
| % | ) | = |
| |||||
1: Data Table
Operating income . . . . . . . . . . . . . . . | $7,360 | |
Total assets . . . . . . . . . . . . . . . . . . . | $16,000 | |
Current liabilities . . . . . . . . . . . . . . . | $4,300 | |
Sales . . . . . . . . . . . . . . . . . . . . . . . | $36,800 | |
Target rate of return . . . . . . . . . . . . . | 16 | % |
(1)
Current liabilities
Operating income
Sales
Total assets
(2)
Current liabilities
Operating income
Sales
Total assets
(3)
Current liabilities
Operating income
Sales
Total assets
(4)
Current liabilities
Operating income
Sales
Total assets
(5)
Current liabilities
Operating income
Sales
Total assets
(6)
Current liabilities
Operating income
Sales
Total assets
(7)
Capital turnover
Operating income
Sales
Total assets
(8)
Capital turnover
Operating income
Sales
Total assets
(9)
Effective tax rate
Target rate of return
WACC
Results from Pioneer Corporation's most recent year of operations are presented in the following table. (Click the icon to view the information.) Requirements 1. Calculate the sales margin, capital turnover, and return on investment (ROI). 2. Calculate the residual income (RI). Requirement 1. Calculate the sales margin, capital turnover, and return on investment (ROI). First enter the formula, then calculate the sales margin. (1) i (2) Sales margin Next enter the formula, then calculate the capital turnover. (Round your answer to two decimal places.) (3) (4) Capital turnover D - C times Now enter the formula, then calculate the ROI. D (5) ID (6) - ROI Requirement 2. Calculate the residual income (RI). Enter the formula, then calculate the residual income. RI ) = %) = 1: Data Table Operating income ........ Total assets .......$ ........$ .....$ .....$ 7,360 16,000 4,300 36,800 Current liabilities ....... Sales Target rate of return Tay llale UI IELU - - - - - - - - - - - - - 16 % Total assets Total assets Total assets Total assets Total assets Total assets (1) O O Current liabilities O Operating income O Sales o the west an ein (2) O O Current liabilities O Operating income O Sales von denen (3) O Current liabilities Operating income O Sales (4) O O Current liabilities Operating income O Sales (5) O O Current liabilities O Operating income O Sales (6) O O Current liabilities 0 Operating income O Sales (7) Total assets Total assets O O Capital turnover O Operating income O Sales (8) O O Capital turnover Operating income O Sales (9) O O Effective tax rate Target rate of return O WACCStep by Step Solution
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