Solano Company has sales of $780,000, cost of goods sold of $510,000, other operating expenses of $38,000, average invested assets of $2,300,000, and a hurdle rate of 12 percent Required: 1. Determine Solano's return on investment (RON, investment turnover, profit margin, and residual income. 2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario's impact on Solano's ROI and residual income. (Note: Treat each scenario independently) a Company sales and cost of goods sold increase by 30 percent b. Operating expenses decrease by $12,000. c. Operating expenses increase by 10 percent d. Average invested assets increase by $440,000 e Solano changes its hurdle rate to 18 percent. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Reg 20 Reg 20 Reg 2 Several possible changes that Solano could face in the upcoming year follow. Determine each scenario's impact on Solano's ROI and residual income. (Note: Treat each scenario independently.) Solano changes its hurdle rate to 18 percent. (LOSS amounts should be indicated with a minus sign. Enter your ROI percentage answer to 2 decimal places, (1.0.0.1234 should be entered as 12.34%.)) Show less Return on investment Residual income 10.09 182,000 $ Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Reg 2c Req 2D Reg 2 Determine Solano's return on investment (ROI), Investment turnover, profit margin, and residual income. (Loss amounts should be indicated with a minus sign. Do not round your intermediate calculations. Enter your ROI and Profit Margin percentage answer to the nearest 2 decimal places, (1.c., 0.1234 should be entered as 12.34%). Round your Investment Turnover answer to 4 decimal places.) Show less Return on investment Investment Tumover Profit Margin Residual income (Loss) 10.09% 33.9100 X 29.74 % 44,000 3 $ Reg 2A > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg1 Reg 2A Reg 21 Req 2c Reg 20 Reg 2E Several possible changes that Solano could face in the upcoming year follow. Determine cach scenario's impact on Solano's ROI and residual income. (Note: Treat each scenario independently.) Operating expenses decrease by $12,000. (LOSS amounts should be indicated with a minus sign. Enter your ROI percentage answer to 2 decimal places, (1.0, 0.1234 should be entered as 12.34%.)) Show less % Return on Investment Residual Income (Loss) 10.61 $ 32,000 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 28 Req 2C Reg 20 Req 2E Several possible changes that Solano could face in the upcoming year follow. Determine each scenario's impact on Solano's ROI and residual income. (Note: Treat each scenario independently.) Operating expenses increase by 10 percent. (Loss amounts should be indicated with a minus sign. Enter your ROI percentage answer to 2 decimal places, (1.0, 0.1234 should be entered as 12.34%.)) Show less Return on investment Residunt Income (L05 9.92 $ 47,800 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req1 Req ZA Req 28 Reg 20 Ref 2D Reg 2 Several possible changes that Solano could face in the upcoming year follow. Determine each scenario's impact on Solano's ROI and residual income. (Note: Treat each scenario independently.) Average Invested assets increase by $440,000. (Loss amounts should be indicated with a minus sign. Enter your ROI percentage answer to 2 decimal places, (c., 0.1234 should be entered as 12.34%.)) Show less Return on investment Residual income (Loss) 8.47 $ 96,800 $ Reg 20 Reg 2 >
