Question
Return on Investment and Residual Income Johnson Company has two sources of funds: long-term debt and equity capital. Johnson Company has profit centers in the
Return on Investment and Residual Income Johnson Company has two sources of funds: long-term debt and equity capital. Johnson Company has profit centers in the following locations with the following net incomes and total assets:
| Net Income | Assets | ||
|---|---|---|---|
| Las Vegas | $1,260,000 | $4,000,000 | |
| Dallas | 1,500,000 | 8,000,000 | |
| Tampa | 2,340,000 | 12,000,000 |
a. Calculate ROI for each profit center and rank them from highest to lowest based on ROI.
Round ROI to the nearest whole percentage.
| ROI | Rank | |
|---|---|---|
| Las Vegas | Answer | Answer123 |
| Dallas | Answer | Answer123 |
| Tampa | Answer | Answer123 |
b. Calculate residual income for each profit center based on a desired ROI of 5% and rank them from highest to lowest based on residual income.
| ROI | Rank | |
|---|---|---|
| Las Vegas | Answer | Answer123 |
| Dallas | Answer | Answer123 |
| Tampa | Answer | Answer123 |
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COSHH Audit Control Of Substances Hazardous To Health A Complete Guide To Understanding A COSHH Audt For Your Business
Authors: HASTAM
1st Edition
1852520981, 978-1852520984
