Sales sent centers, Indigo Company accumulates the following data: Controllable margin Average operating assets I $2,400,000 $4,800,000 $4,800,000 1.560.000 2.208.000 4,080,000 6,000,000 9,600,000 12,000,000 The return on investment 11 Compute the return on investment (ROI) for each center. 111 HII
Q: P3-66A (Learning Objective 1: Explain how accrual accounting differs from cash-basis accounting)…
A: Cash Basis Accounting:The cash basis of accounting recognizes revenues when cash is received, and…
Q: A machine costing $211,400 with a four-year life and an estimated $19,000 salvage value is installed…
A: Depreciation expense :— It is the allocation of depreciable cost of an asset over the estimated…
Q: Manufacturing cost data for Blossom Company, which uses a job order cost system, are presented…
A: Total manufacturing cost is the sum of direct material, direct labor and manufacturing overhead…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135,…
A: The process of choosing the best financial course of action based on pertinent financial data and…
Q: Ivanhoe Corporation purchased equipment very late in 2023. Based on generous capital cost allowance…
A: Deferred tax asset: The deferred tax asset is created when the taxes to be paid as per income tax…
Q: Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The…
A: The time an employee works in excess of their usual working hours is referred to as overtime.…
Q: On March 1, 2021, Happy Company leased equipment Great Company for a four-year period ending…
A: Lease accounting refers to the process of recording and reporting financial transactions related to…
Q: You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the…
A: Bonds are long-term debt securities. The bonds can be issued discount when the market offers higher…
Q: How does the concept of depreciation impact a company's financial statements and overall financial…
A: Depreciation is a crucial concept in accounting that reflects the gradual decrease in the value of…
Q: Required: 1. Determine the amount of U.S. taxable income for each entity. 2. Calculate the foreign…
A: The part of a person or entity's earnings that is susceptible to taxation by the taxing authority is…
Q: At the beginning of 2022, Suarez Corp. traded in an old machine for a newer model, a change which…
A: Book value of asset is the difference between original cost of asset and accumulated depreciation…
Q: On March 15, 2022, MOSCOW received a court decision on a lawsu filed against the company in January…
A: Contingent liabilities are potential obligations originating from previous events whose existence is…
Q: The income statements for Galaxy Tennis for the years ending December 31, 2024 and 2023, are…
A: The horizontal analysis is comparing the previous year financial statements with the current year…
Q: WA & FIFO; cost of production report In a single-process production system, Phunky Phingers produces…
A: The cost of production report is a statement that describes details regarding the flow of quantities…
Q: (a) Identify the high and low points. High point Low point Machine Hours tA $ tA $ $ GA Using the…
A: High-low method is one of the techniques that is used to separate fixed and variable components from…
Q: Colonial Pharmaceuticals is a small firm specializing in new products. It is organized into two…
A: Economic Value Added (EVA) is a monetary performance indicator that gauges an organization or…
Q: Determine the flexible budget variances and sales price variance, noting the amount and sign for…
A: Flexible budget variance is the difference between Actual results and results according to Flexible…
Q: You audited the financial statements of PIS Corp. for the first time in 2021. The company started…
A: Working capital refers to the funds that a company has available for its daily operations. It…
Q: agricultural assets are examples of pp&e?
A: Agricultural assets are the assets used for agricultural activities and includes Biological…
Q: What are the key differences between accrual accounting and cash accounting, and how do these…
A: Accrual accounting and cash accounting are two fundamental methods used in recording financial…
Q: Varto Company has 11,000 units of its product in inventory that it produced last year at a cost of…
A: Incremental cost is the cost incurred for the production of additional products. Variable cost…
Q: On January 1, 2019, Jonathan Corporation had 75,000 shares of $1 par value common stock issued and…
A: The dividend is declared to the shareholders from the retained earnings of the business. The…
Q: Westerville Company reported the following results from last year's operations: COI Sales Variable…
A: Return on Investment (ROI) is a measure by which a person calculates the profitability of the…
Q: The adjusted trial balance for Tybalt Construction as of December 31, 2019, follows. TYBALT…
A: Journal Entry : Method of recording financial transactions in the book of original entry by debiting…
Q: You have some property for sale and have received two offers. The first offer is for $189,000 today…
A: According to the financial principle known as "the time value of money," a certain amount of cash…
Q: The following data relate to direct materials costs for Februar Materials cost per yard: standard,…
A: Variance analysis is a technique used in management accounting to compare and analyze the…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135,…
A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…
Q: The following schedule of capital assets was prepared for Capital City. Government Activities Total…
A: An organization's capital fund is the difference between its assets and liabilities. Bonds and stock…
Q: Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income…
A: Cash flow statement is the financial statement that records all the cash inflow and cash outflow…
Q: answer should be complete and correct with all working A convenient store sells 500 units…
A: The number of total units that are produced and sold to the customer, the amount of inventory that…
Q: The negligence of Dave, driver of a certain bus company, resulted in the death of Pedro's wife,…
A: Gross income refers to the total earnings or revenue generated by an individual, business, or entity…
Q: CASE 2: On January 1, 2020, EF Corp. leased an equipment for 5 years at semi-annual rental of…
A: In a lease, the lessor agrees to provide the lessee with the right to use the asset for a…
Q: Mr. Abdul Karim is a senior officer of a company. His service started on 01 July 2019. His salary…
A: The income that remains after certain deductions and exemptions are deducted, and is the income on…
Q: Required information Skip to question [The following information applies to the questions displayed…
A: The main idea behind absorption costing is to distribute all costs associated with producing goods,…
Q: Required information [The following information applies to the questions displayed below.] Carmen…
A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135,…
A: FIXED COST Fixed costs are costs that constant at any level of activity.fixed costs are rent and…
Q: 5. Marching Tires, Inc. acquired 39,000 shares of Urethane Corporation stock at a price of $40 per…
A: Fair value Adjustment is the adjustment of the value of the asset or investment at the fair value or…
Q: [The following information applies to the questions displayed below.] Patel and Sons Incorporated…
A: The distinction between applied overhead and actual overhead is referred to as overhead variance.…
Q: operty, plant, and equipment generally represent a material portion of the total assets of most…
A: Financial reporting can be defined as a process of reporting financial transactions on a quarterly…
Q: Choosing to combine the cost of paper clips with other office products in a single account for…
A: The purpose of financial reporting is to keep tabs on, analyze, and report on your company's…
Q: Subject: Work Space In The Home Costs During the current year, Jobul Krist has the following costs:…
A: The annual deduction that is claimed on depreciable assets in the Canadian tax system under the…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Amount of inventory in hand means the inventory that is left with the entity at the end of the…
Q: Compute for the adjusted balances of the following as of December 31, 2019: 1. Ordinary shares 2.…
A: Stockholder's Equity -Stockholder's Equity includes the amount contributed by shareholders issued in…
Q: Grouper Industries Ltd. acquired two copyrights during 2023. One copyright was on a textbook that…
A: Intangible asset is one of the types of assets which have no physical substance. It includes…
Q: 3. CASE STUDY Giangelo Corporation would like to venture in manufacturing a specialized tool that is…
A: Payback Period:It is the period in which the firm's initial cost is recovered.NPV ( Net Present…
Q: Schriever Corporation is an oll well service company that measures its output by the number of wells…
A: FLEXIBLE BUDGETA flexible budget is a budget that is prepared for different levels of activity or…
Q: 7. .For each situation, determine i).the amount ii) the interest earned a) $ 15000 borrowed for 6…
A: Time value of money is one of useful technique used in finance. This says that amount invested today…
Q: Excel Products Inc. pays its employees semimonthly. The summary of the payroll for December 31,…
A: Payroll tax is the liability of the employer imposed by the federal and state government. The…
Q: The Greensboro Performing Arts Center (GPAC) has a total capacity of 8,600 seats: 2,400 center…
A: Sales variances are the differences between the actual sales revenue generated by a company and the…
Q: JIAYU Industries, Inc. manufactures and sells three products: a Personal Digital Assistant (PDA), a…
A: Using the concept of cost volume profit analysis (CVP) we can do computations like break-even point,…
Step by step
Solved in 3 steps
- For its three investment centers, Monty Company accumulates the following data. 11 $1,960,000 $3,920,000 Controllable margin 1,470,000 2,116,800 Average operating assets 4,900,000 7,840.000 Sales Compute the return on investment (ROI) for each center. Return on investment Madla % ||| $3,920,000 3,724,000 9,800,000 % 111For its three investment centers, Gerrard Company accumulates the following data: I II III Sales $2,000,000 $4,000,000 $4,000,000 Controllable margin 1,400,000 2,000,000 3,600,000 Average operating assets 5,000,000 8,000,000 10,000,000 Compute the return on investment (ROI) for each center. I II III The return on investment enter percentages % enter percentages % enter percentages %For its three investment centers, Gerrard Company accumulates the following data: I II III Sales $2,062,000 $3,914,000 $3,905,000 Controllable margin 848,640 2,161,620 4,103,120 Average operating assets 4,992,000 8,006,000 12,068,000 Compute the return on investment (ROI) for each center. I II III The return on investment % % % eTextbook and Media
- For its three investment centers, Ayayai Company accumulates the following data: Sales Controllable margin Average operating assets $2,480,000 1,736,000 6,200,000 The return on investment 11 $4,960,000 2.480,000 9,920.000 Compute the return on investment (ROI) for each center. 25 % 111 $4,960,000 4,464,000 12.400.000 11 21.43 m 24 96For its three investment centres, Stahl Company accumulates the following data: Centre I Centre il Centre III Sales $1,996,000 $4,043,000 $3,962,000 Controllable margin 785,760 2,663,760 4,372,200 Average operating assets 4,911,000 8,072,000 12,145,000 Calculate the return on investment (ROI) for each centre. The return on investment Centre I % Centre II % Centre IIIMegamart provides the following information on its two investment centers. Investment Center Electronics Sporting goods Sales $ 63,460,000 19,050,000 Income $ 3,173,000 2,286,000 Average Assets $ 16,700,000 12,700,000 Exercise 22-10 (Algo) Computing return on investment and residual income; investing decision LO A1 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 12% of average assets. Compute residual income for each center. Which center generated the most residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? The target return is 12%.
- For its three investment centres, National Inc. accumulates the following data: Centre I Centre II Centre III Sales $2,000,000 $4,000,000 $4,000,000 Operating income 1,300,000 1,840,000 2,880,000 Average Operating Assets 5,000,000 8,000,000 12,000,000 Minimum required return 15% 20% 25% 1.) What is the return on investment (ROI) for Centre I? a. 20% b. 23% c. 24% d. 26% 2.)The residual income (RI) for Centre III is a. $150,000 b. $550,000 c. $240,000 d. -$120,000 3.)The ranking of the centres based on return on investment (ROI) with the best performer listed first is as follows a. Centre I, Centre II, Centre III b. Centre I, Centre III, Centre II c. Centre III, Centre II, Centre I d. Centre II, centre III, Centre I 4.)What is the return on investment (ROI) for Centre II? a. 20% b. 23% c. 24% d. 26%For its three investment centers, Blue Spruce Company accumulates the following data: II II Sales $2,520,000 $5,040,000 $5,040,000 Controllable margin 1,827,000 2,620,800 4,662,000 Average operating assets 6,300,000 10,080,000 12,600,000 Compute the return on investment (ROI) for each center. II II The return on % % investmentSelected data from an investment center of IROL Inc. follow:Sales $8,000,000Net book value of assets, beginning 2,500,000Net book value of assets, ending 2,600,000Net operating income 640,000Minimum rate of return 12%Required1. Calculate return on sales (ROS), asset turnover (AT), and return on investment (ROI).2. Calculate residual income (RI).
- Two investment centers at Marshman Corporation have the following current-year income and asset data: Investment Investment Center A Center B Investment center income $ 410,000 $ 524,700 Investment center average invested assets $2,430,000 $1,980,000 The return on investment (ROI) for Investment Center B is: Multiple Choice 38.5% 21.2% 25.5% 377.4%For its three investment centres, Stahl Company accumulates the following data: Centre I Centre II Centre III Sales $1,971,600 $4,003,000 $3,944,000 Controllable margin 788,640 2,346,970 3,643,800 Average operating assets 4,929,000 8,093,000 12,146,000 The centres expect the following changes in the next year: Centre I a 20% increase in sales; Centre II a $323,720 decrease in costs; and Centre III a $485,840 decrease in average operating assets.Calculate the expected return on investment for each centre. Assume Centre I has a contribution margin percentage of 80%. (Round ROI to 2 decimal places, e.g. 1.57%.) Centre I Centre II Centre III The expected return on investment % % %Given the following data: Average operating assets $ 1,116,000 Total liabilities $ 167,400 Sales $ 837,000 Contribution margin $ 502,200 Net operating income $ 167,400 Return on investment (ROI) is: Multiple Choice 20.0% 15.0% 60.0% 45.0%