Accounting Assume a company reported the following results: Sales $ 400,000 Variable expenses 260,000 Contribution margin 140,000 Fixed expenses 40,000 Net operating income $ 100,000 Average operating assets $ 500,000 If the company's minimum required rate of return on average operating assets is 16%, its residual income would be:
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- Assume a company had net operating income of $300,000, sales of $1,500,000, residual income of $130,000, and a minimum required rate of return on average operating assets of 14.00%. The company's average operating assets are closest to: Multiple Choice $1,214,286. $1,035,715. $1,157144. $1,200,000. 田Assume a company reported the following results: Sales Variable expenses Contribution margin Fixed expenses $ 400,000 268,000 140,000 40,000 $ 100,000 $ 425,000 Net operating income Average operating assets If the company's minimum required rate of return on average operating assets is 16%, its residual income would be: Multiple Choice $33.000. $35.000. $32.000. $34,000Determining missing items in return and residual income computations Data for Uberto Company are presented in the following table of rates of return on investment and residual incomes: Invested Assets Income from Operations Return on Investment Minimum Return Minimum Acceptable Income from Operations Residual Income $925,000 $185,000 (a) 15% (b) (c) $775,000 (d) (e) (f) $93,000 $23,250 $450,000 (g) 18% (h) $58,500 (i) $610,000 $97,600 (j) 12% (k) (l) Determine the missing values, identifying each item by the appropriate letter. a. fill in the blank 1% b. $fill in the blank 2 c. $fill in the blank 3 d. $fill in the blank 4 e. fill in the blank 5% f. fill in the blank 6% g. $fill in the blank 7 h. fill in the blank 8% i. $fill in the blank 9 j. fill in the blank 10% k. $fill in the blank 11 l. $fill in the blank 12
- XY Company provided you the following data: Average operating assets 120,000 Margin on sales 15% Minimum required rate of return 20% Return on investment 25% Sales 300,000 Turnover 2.50 What is the residual income? (Correct ans: 21,000) need solutionDetermining missing items in return and residual income computations Data for Uberto Company are presented in the following table of rates of return on investment and residual incomes: Invested Assets Income from Operations Return on Investment Minimum Return Minimum Acceptable Income from Operations Residual Income $980,000 $225,400 (a) 13% (b) (c) $600,000 (d) (e) (f) $72,000 $24,000 $320,000 (g) 14% (h) $35,200 (i) $240,000 $45,600 (j) 11% (k) (l) Determine the missing values, identified by the letters above. For all amounts, round to the nearest whole number.Determining missing items in return and residual income computations Data for Uberto Company are presented in the following table of returns on investment and residual incomes: Invested Assets Income from Operations Return on Investment Minimum Return Minimum Acceptable Income from Operations Residual Income $890,000 $231,400 (a) 15% (b) (c) $460,000 (d) (e) (f) $50,600 $23,000 $310,000 (g) 14% (h) $31,000 (i) $230,000 $48,300 (j) 12% (k) (l) Determine the missing values, identified by the letters above. For all amounts, round to the nearest whole number. a. % b. c. d. e. % f. % g. h. % i. j. % k. l.
- Supply the missing data for three service companies shown in the table below: Note: Loss amounts should be indicated by a minus sign. Round your percentage answers to nearest whole percent. Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual income A Company B C $ 9,450,000 $ $ 7,750,000 329,000 $ 5,175,000 $ 3,150,000 $ 2,070,000 11 % 14 % % 9% $ 376,000 % 14 % $ 103,500Assume a company reported the following results: Sales $ 400,000 Variable expenses 260, e00 Contribution margin Fixed expenses 140,000 40,000 Net operating income S 100, eee Average operating assets $ 450, e00 The return on investment (RO) is closest to: Multiple Choice 88.9% 23.5% O 35.0% 22.2%8. The following information is available for the Hancock Company. Sales Cost of Sales Operating Expenses Operating Earnings Average Invested Capital Minimum Acceptable Return Residual Income Capital Turnover ROI $ 756,000 315,000 $ $ 252,000 A $1,890,000 12% B C D Compute the answers for items A-D.
- Determining missing items in return and residual income computations Data for Uberto Company are presented in the following table of rates of return on investment and residual incomes: Invested Assets Income from Operations Return on Investment Minimum Return Minimum Acceptable Income from Operations Residual Income $950,000 $228,000 (a) 13% (b) (c) $550,000 (d) (e) (f) $60,500 $27,500 $350,000 (g) 14% (h) $38,500 (i) $260,000 $52,000 (j) 12% (k) (l) Determine the missing values, identified by the letters above. For all amounts, round to the nearest whole number. a. fill in the blank 1% b. $fill in the blank 2 c. $fill in the blank 3 d. $fill in the blank 4 e. fill in the blank 5% f. fill in the blank 6% g. $fill in the blank 7 h. fill in the blank 8% i. $fill in the blank 9 j. fill in the blank 10% k. $fill in the…Assume a company had net operating income of $300,000, sales of $1,500,000, average operating assets of $1,000,000, and residual income of $130,000. The company's minimum required rate of return on average operating assets is closest to: Multiple Choice о о O о 15%. 16%. 17%. 18%.Accounting Gosnell Company produces two products: squares and circles. The projected income for thecoming year, segmented by product line, follows:Squares Circles TotalSales P300,000 P2,500,000 P2,800,000Less: Variable expenses 100,000 500,000 600,000Contribution margin P200,000 P2,000,000 P2,200,000Less: Direct fixed expenses 28,000 1,500,000 1,528,000Product margin P172,000 P 500,000 P 672,000Less: Common fixedexpenses100,000Operating expenses P 572,000The selling prices are P30 for squares and P50 for circles.1. Compute the number of units of each product that must be sold for Gosnell Companyto break even.2. Assume that the marketing manager changes the sales mix of the two products sothat the ratio is three squares to five circles. Repeat Requirement 13. Refer to the original data. Suppose that Gosnell can increase the sales of squares withincreased advertising. The extra advertising would cost an additional P45,000, andsome of the potential purchasers of circles would switch to…