Stuart Company calculated its return on investment as 10 percent. Sales are now $450,000, and the...
Stuart Company calculated its return on investment as 10 percent. Sales are now $450,000, and the amount of total operating assets is $470,000.
Required
-
If expenses are reduced by $47,000 and sales remain unchanged, what return on investment will result? (Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45).)
-
If both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve the same result? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)
Homework Answers
Net income = 470000*10% = 47000
a) ROI = Net income/Operating assets = (47000+47000)/470000 = 20%
b) ROI = Net income/Operating assets
0.20 = 47000/X
X = 235000
So decrease $235000 in operating assets
Add Answer to:
Stuart Company calculated its return on investment as 10
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Franklin Company calculated its return on investment as 10 percent. Sales are now $370,000, and the...
Franklin Company calculated its return on investment as 10
percent. Sales are now $370,000, and the amount of total operating
assets is $390,000.
Required
If expenses are reduced by $31,200 and sales remain unchanged,
what return on investment will result? (Round your answer
to 2 decimal places. (i.e., .2345 should be entered as
23.45).)
If both sales and expenses cannot be changed, what change in the
amount of operating assets is required to achieve the same result?
(Do not round...
Solomon Company calculated its return on investment as 10 percent. Sales are now $440,000, and the amount of total...
Solomon Company calculated its return on investment as 10 percent. Sales are now $440,000, and the amount of total operating assets is $460,000 Required a. If expenses are reduced by $43,700 and sales remain unchanged, what return on investment will result? (Round your answer to 2 decimal places. (ie...2345 should be entered as 23.45).) b. If both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve the same result? (Do not...
Perez Company calculated its return on investment as 10 percent. Sales are now $410,000, and the...
Perez Company calculated its return on investment as 10 percent. Sales are now $410,000, and the amount of total operating assets is $430,000. Required a. If expenses are reduced by $38,700 and sales remain unchanged, what return on investment will result? (Round your answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).) b. If both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve the same result? (Do...
Finch Company calculated its return on investment as 10 percent. Sales are now $360,000, and the...
Finch Company calculated its return on investment as 10 percent. Sales are now $360,000, and the amount of total operating assets is $380,000 Required a. If expenses are reduced by $32,300 and sales remain unchanged, what return on investment will result? (Round your answer to 2 decimal places. (.e., 0.2345 should be entered as 23.45).) b. If both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve the same result? (Do...
Exercise 15-13 Return on investment LO 15-7 Benson Company calculated its return on investment as 10...
Exercise 15-13 Return on investment LO 15-7 Benson Company calculated its return on investment as 10 percent. Sales are now $330,000, and the amount of total operating assets is $350,000. Required a. If expenses are reduced by $29,400 and sales remain unchanged, what return on investment will result? (Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45).) b. If both sales and expenses cannot be changed, what change in the amount of operating assets is...
Required Supply the missing information in the following table for Stuart Company. (Do not round intermediate...
Required Supply the missing information in the following table for Stuart Company. (Do not round intermediate calculations. Round "ROI answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).) 342,000 Sales ROI Operating assets Operating income Tumover Residual income Operating profit margin Desired rate of return Prex 6 of 7 !!! Next >
Exercise 15-16 Return on investment and residual income LO 15-6, 15-7 Required Supply the missing information...
Exercise 15-16 Return on investment and residual income LO 15-6, 15-7 Required Supply the missing information in the following table for Perez Company. (Do not round intermediate calculations. Round "ROI" answer to 2 decimal places. (i., .2345 should be entered as 23.45).) 365,400 Sales $ ROI Operating assets Operating income Turnover Residual income 2.1 13 % Operating profit margin Desired rate of return 18 %
Problem 15-22 Return on investment LO 15-6 Gibson Corporation’s balance sheet indicates that the company has...
Problem 15-22 Return on investment LO 15-6
Gibson Corporation’s balance sheet indicates that the company
has $580,000 invested in operating assets. During 2018, Gibson
earned operating income of $67,280 on $1,160,000 of sales.
Required
Compute Gibson’s profit margin for 2018.
Compute Gibson’s turnover for 2018.
Compute Gibson’s return on investment for 2018.
Recompute Gibson’s ROI under each of the following independent
assumptions:
(1) Sales increase from $1,160,000 to $1,392,000, thereby resulting
in an increase in operating income from $67,280 to...
Problem 15-22 Return on investment LO 15-6 Gibson Corporation’s balance sheet indicates that the company has $580,000 in...
Problem 15-22 Return on investment LO 15-6
Gibson Corporation’s balance sheet indicates that the company
has $580,000 invested in operating assets. During 2018, Gibson
earned operating income of $67,280 on $1,160,000 of sales.
Required
Compute Gibson’s profit margin for 2018.
Compute Gibson’s turnover for 2018.
Compute Gibson’s return on investment for 2018.
Recompute Gibson’s ROI under each of the following independent
assumptions:
(1) Sales increase from $1,160,000 to $1,392,000, thereby resulting
in an increase in operating income from $67,280 to...
Required Supply the missing information in the following table for Unify Company. (Do not round intermediate...
Required Supply the missing information in the following table for Unify Company. (Do not round intermediate calculations. Round "ROI" answer to 2 decimal places. (i.e., .2345 should be entered as 23.45).) | $ 605,000 Sales ROI Operating assets Operating income Turnover Residual income Operating profit margin Desired rate of return 2.2 10%
Franklin Company calculated its return on investment as 10
percent. Sales are now $370,000, and the amount of total operating
assets is $390,000.
Required
If expenses are reduced by $31,200 and sales remain unchanged,
what return on investment will result? (Round your answer
to 2 decimal places. (i.e., .2345 should be entered as
23.45).)
If both sales and expenses cannot be changed, what change in the
amount of operating assets is required to achieve the same result?
(Do not round...
Solomon Company calculated its return on investment as 10 percent. Sales are now $440,000, and the amount of total operating assets is $460,000 Required a. If expenses are reduced by $43,700 and sales remain unchanged, what return on investment will result? (Round your answer to 2 decimal places. (ie...2345 should be entered as 23.45).) b. If both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve the same result? (Do not...
Perez Company calculated its return on investment as 10 percent. Sales are now $410,000, and the amount of total operating assets is $430,000. Required a. If expenses are reduced by $38,700 and sales remain unchanged, what return on investment will result? (Round your answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).) b. If both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve the same result? (Do...
Finch Company calculated its return on investment as 10 percent. Sales are now $360,000, and the amount of total operating assets is $380,000 Required a. If expenses are reduced by $32,300 and sales remain unchanged, what return on investment will result? (Round your answer to 2 decimal places. (.e., 0.2345 should be entered as 23.45).) b. If both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve the same result? (Do...
Exercise 15-13 Return on investment LO 15-7 Benson Company calculated its return on investment as 10 percent. Sales are now $330,000, and the amount of total operating assets is $350,000. Required a. If expenses are reduced by $29,400 and sales remain unchanged, what return on investment will result? (Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45).) b. If both sales and expenses cannot be changed, what change in the amount of operating assets is...
Required Supply the missing information in the following table for Stuart Company. (Do not round intermediate calculations. Round "ROI answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).) 342,000 Sales ROI Operating assets Operating income Tumover Residual income Operating profit margin Desired rate of return Prex 6 of 7 !!! Next >
Exercise 15-16 Return on investment and residual income LO 15-6, 15-7 Required Supply the missing information in the following table for Perez Company. (Do not round intermediate calculations. Round "ROI" answer to 2 decimal places. (i., .2345 should be entered as 23.45).) 365,400 Sales $ ROI Operating assets Operating income Turnover Residual income 2.1 13 % Operating profit margin Desired rate of return 18 %
Problem 15-22 Return on investment LO 15-6
Gibson Corporation’s balance sheet indicates that the company
has $580,000 invested in operating assets. During 2018, Gibson
earned operating income of $67,280 on $1,160,000 of sales.
Required
Compute Gibson’s profit margin for 2018.
Compute Gibson’s turnover for 2018.
Compute Gibson’s return on investment for 2018.
Recompute Gibson’s ROI under each of the following independent
assumptions:
(1) Sales increase from $1,160,000 to $1,392,000, thereby resulting
in an increase in operating income from $67,280 to...
Problem 15-22 Return on investment LO 15-6
Gibson Corporation’s balance sheet indicates that the company
has $580,000 invested in operating assets. During 2018, Gibson
earned operating income of $67,280 on $1,160,000 of sales.
Required
Compute Gibson’s profit margin for 2018.
Compute Gibson’s turnover for 2018.
Compute Gibson’s return on investment for 2018.
Recompute Gibson’s ROI under each of the following independent
assumptions:
(1) Sales increase from $1,160,000 to $1,392,000, thereby resulting
in an increase in operating income from $67,280 to...
Required Supply the missing information in the following table for Unify Company. (Do not round intermediate calculations. Round "ROI" answer to 2 decimal places. (i.e., .2345 should be entered as 23.45).) | $ 605,000 Sales ROI Operating assets Operating income Turnover Residual income Operating profit margin Desired rate of return 2.2 10%
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