Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 3, Problem 3.11E
Exercise 3.11
LO 3
- Firm A has a margin of 8%, sales of $630,000, and ROI of 16.8%. Calculate the firm’s average total assets.
- Firm B has net income of $246,400, turnover of 1.1, and average total assets of $1,600,000. Calculate the firm’s sales, margin, and ROI. Round your percentage answer to one decimal place.
- Firm C has net income of $43,500, turnover of 2.9, and ROI of 23.2%. Calculate the firm’s margin, sales, and average total assets. Round your percentage answer to one decimal place.
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Question 3
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1.
Chapter 11: Applying Excel
Data
$ 72,000,000
$ 3,600,000
$ 18,000,000
24%
4
Sales
Net operating income
6.
Average operating assets
7
Minumum required rate of return
If your formulas are correct, you should get the correct answers to the following questions.
a. What is the ROI?
ROI
%
b. What is the residual income? (Nagative amount should be indicated by a minus sign.)
Residual income
c. Why is the residual income negative?
2.
5.
Chapter 10: Applying Excel: Exercise (Part 2 of 2)
Requirement 2:
Revise the data in your worksheet as follows:
A
1 Chapter 10: Applying Excel
2
3
Data
4 Sales
5
6
7
Net operating income
ROI
Average operating assets
Minumum required rate of return
If your formulas are correct, you should get the correct answers to the following questions.
a. What is the ROI?
Residual income
B
%
c. Why is the residual income positive?
$ 64,000,000
$ 7,680,000
$ 16,000,000
25%
b. What is the residual income? (Negative amount should be indicated by a minus sign.)
Chapter 3 Solutions
Accounting: What the Numbers Mean
Ch. 3 - Prob. 3.1MECh. 3 - Mini-Exercise 3.2 LO 3 ROI analysis using the...Ch. 3 - Mini-Exercise 3.3 LO 4 Calculate ROE Firm L had...Ch. 3 - Prob. 3.4MECh. 3 - Mini-Exercise 3.5 LO 6 Calculate current...Ch. 3 - Mini-Exercise 3.6 LO 6 Calculate working capital...Ch. 3 - Exercise 3.7 LO 2 Compare investment alternatives...Ch. 3 - Prob. 3.8ECh. 3 - Exercise 3.9 LO 2 Compare investment alternatives...Ch. 3 - Exercise 3.10 LO 2 Compare investment alternatives...
Ch. 3 - Exercise 3.11 LO 3 ROI analysis using the DuPont...Ch. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - Prob. 3.14ECh. 3 - Exercise 3.15 LO 6 Effect of transactions on...Ch. 3 - Exercise 3.16 LO 6 Effect of transactions on...Ch. 3 - Calculate profitability measures using annual...Ch. 3 - Prob. 3.18PCh. 3 - Problem 3.19 LO 6 Calculate and analyze liquidity...Ch. 3 - Problem 3.20 LO 6 Calculate and analyze liquidity...Ch. 3 - Problem 3.21 LO 3 Applications of ROI using the...Ch. 3 - Prob. 3.22PCh. 3 - Case 3.23 LO 3. 4, 6, 2 Focus company-analysis of...Ch. 3 - Case 3.24 LO 3, 4, 6, 7 Analysis of liquidity' and...
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