Solano Company has sales of $880.000, cost of goods sold of $560,000, other operating expenses of $45,000, average invested assets of $2,550,000, and a hurdle rate of 12 percent Required: 1. Determine Solano's return on investment (ROI), 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 40 percent b. Operating expenses decrease by $14,000 c. Operating expenses increase by 10 percent d. Average invested assets increase by $490,000 e. Solano changes its hurdle rate to 18 percent Complete this question by entering your answers in the tabs below. Req1 Reg 2A Reg 28 Req 2c Reg 20 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 Prolit Margin percentage answer to the nearest 2 decimal places, (ie, 0.1234 should be entered as 12.34%). Round your Investment Turnover answer to 4 decimal places.) % Roturn on Investment Investment Turnover Pro Mar (1) Residual Income (Loss) % 1. Determine Solano's return on investment (ROI), investment turnover, profit margin, a 2. Several possible changes that Solano could face in the upcoming year follow. Dete and residual income. (Note: Treat each scenario independently.) a. Company sales and cost of goods sold increase by 40 percent. b. Operating expenses decrease by $14,000. c. Operating expenses increase by 10 percent. d. Average invested assets increase by $490,000. e. Solano changes its hurdle rate to 18 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2c Req 2D Reg 2E Several possible changes that Solano could face in the upcoming year follow. Determine ea ROI and residual income. (Note: Treat each scenario independently.) Company sales and co percent. (Loss amounts should be indicated with a minus sign. Enter your ROI percentage a 0.1234 should be entered as 12.34%.)) Return on Investment Residual Income (Loss) mework in 1. Determine Solano's return on investment (ROI), investment turnover, pro 2. Several possible changes that Solano could face in the upcoming year and residual income. (Note: Treat each scenario independently) a. Company sales and cost of goods sold increase by 40 percent. b. Operating expenses decrease by $14.000 c. Operating expenses increase by 10 percent. d. Average invested assets increase by $490,000. e. Solano changes its hurdle rate to 18 percent. Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Req 28 Req 2c Req 2D Red Several possible changes that Solano could face in the upcoming year follow. ROI and residual income. (Note: Treat each scenario independently.) Operating amounts should be indicated with a minus sign. Enter your ROI percentage ans be entered as 12.34%.)) Return on Investment Residual Income (Loss)
