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While reviewing last year's performance outcomes for comparison to this year, Linda finds several pieces are missing. Apparently, a virus attacked select components of
While reviewing last year's performance outcomes for comparison to this year, Linda finds several pieces are missing. Apparently, a virus attacked select components of the system's memory, and the back-up information was too difficult to extract from the file. She knows that all three divisions use the corporate tax rate (26%), minimum rate of return (10%), and WACC (8%) to determine their respective RI and EVA metrics. The following information reflects the components that Linda could identify for each of the three divisions in the company. Industrial Technology Service Sales $125,000 G M Operating income $9.000 $16,800 N After-tax operating income A H $15,318 Operating assets $80,000 I Total assets $100,000 $197,000 P Current liabilities $5,000 J $10,500 ROI B 10% Q RI EVA Profit margin Asset turnover C K $10,700 D E F $632 $6.558 L 13.8% 2 R Sales Operating income After-tax operating $ income Operating assets Total assets Current liabilities ROI Residual $ income EVA $ Profit margin Asset turnover Industrial $125,000 $ $9,000 A $ $80,000 $ $100,000 $5,000 % B $ C $ % E Technology G $ Service $16,800 H $15,318 $197,000 $ 10% $632 F 2 $10,500 K $10,700 $6,558 % L 13.8%
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