yellow blank cells must be answered in the form of the simple equation used to solve
Al X fv Adams Corporation evaluates divisional managers based on ROI. Operating 1 Adams Corporation evaluates divisional managers based on ROI. Operating results for the 2 company's Northern Division for last year are given below: Sales Variable expenses Contribution margin Fixed expenses Net operatiz income 27,000,000 16,200,000 10,800,000 8,805,000 1.995,000 Average divisional operating assets $ 9,500,000 12 The Northern Division has an opportunity to add a new product line at the beginning of the year as follows: Average required investment Net operating income 2,500,000 400,000 $ 159 17 Adams Corporation's minimum acceptable rate of return 19 Assuming the company accepts all projects that meet or exceed the minimum rate of return, compute the following: 21 Northern Division ROI for last year 23 Northern Division ROI if new product line is added 18 19 Assuming the company accepts all projects that meet or exceed the minimum rate of return, compute the following: 21 Northern Division ROI for last year 23 Northern Division ROI if new product line is added 25 Write an IF statement to determine whether the Northern Division 26 manager will ACCEPT or REJECT the new product line based on ROI. 28 Northern Division residual income for last year 30 Northern Division residual income if the new product line is added 32 Write an IF statement to determine whether the Northern Division manager 33 will ACCEPT or REJECT the new product line based on residual income Adams Corporation evaluates divisional managers based on Return on Investment (ROI) and has provided the operating results of the Northern Division from last year. The Controller has asked you to compute the ROI and Residual Income based on data from last year and if the division adds a new product line. Use the information included in the Excel Simulation and the Excel functions described below to complete the task. Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell, -G5" was entered, the formula would output the result from cell G5, or 4.00 in this example. Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: + (plus sign to add). - (minus sign to subtract). (asterisk sign to multiply), and/ (forward slash to divide). From the Excel Simulation below, if in a blank cell-G5+G6" was entered the formula would add the values from those cells and output the result of 10.00 in this example. If using the other math symbols the result would output an appropriate answer for its function. SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. From the Excel Simulation below, if in a blank cell =SUM(G5,66,67) was entered, the formula would output the result of adding those three separate cells, or 12.00 in this example. Similarly, if in a blank cell -SUM(G5:G7)" was entered, the formula would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be 12.00 in this example. IF function: Allows you to test a condition and return a specific value is the result is true and different value if the result is false. The syntax of the IF function is "IF(test_condition,value_il_true,value_il_false)" and specific considerations need to be made when using this function. The test.conditio argument is an evaluation of the status of a cell, such as if the value of a cell is greater than, less than or equal to another number or cell. The value_it_true and value_it_false arguments will return any specific result for each option, such as another cell reference, a value, or text. Throughout the entire equation, if text is being used in th value_ true, or value_ false arguments then the text itself should be entered in quotations so that Excel will recognize the text as a "string of text" instead of another function. From the Excel Simulation below, if in a blank cell-IF(G10-20,"Total cost is High", "Total the formula would output the result of the value_il_true since the test_condition would be result as true, or In this case the text "Total cost is high". Excel processes the IF function by separating it out into separate parts. First the test.condition - Excel thinks, find cell G10 and determine if the value is greater than 20. Once Excel determines if the result of that test condition is TRUE or FALSE, it will return the value. (true or value.I false
