Oswalt Company calculated its return on investment as 13 percent. Sales are now $180,000, and the amount

Question:

Oswalt Company calculated its return on investment as 13 percent. Sales are now $180,000, and the amount of total operating assets is $300,000.

Required

a. If expenses are reduced by $18,000 and sales remain unchanged, what return on investment will result?

b. If both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve the same result?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Survey of Accounting

ISBN: 978-0073379555

2nd edition

Authors: Edmonds, old, Mcnair, Tsay

See More Books

Question Posted: Jan 03, 2012 01:51 AM

See More Questions

Albany Company calculated its return on investment as 10 percent. Sales are now $300,000, and the amount of total operating assets is $480,000. Required a. If expenses are reduced by $30,000 and...
Eastevan Company calculated its return on investment as 10 percent. Sales are now $300,000, and the amount of total operating assets is $320,000. Required a. If expenses are reduced by $28,000 and...
Return on investment Mitchell Company calculated its return on investment as 13 percent. Sales are now $270,000, and the amount of total operating assets is $450,000. Required a. If expenses are...
What is the purpose of a Notice of Assessment?
Cheryl Cheerleader is a 17 year old who was elected homecoming queen and does some part-time modeling to earn money for college. She has an important interview with a modeling agency and wants to...
A ball is kicked at a house window. The window is 4m up a vertical wall from a horizontal floor. The ball is kicked from a position that is 12 m distance from the foot of the wall. If the ball enters...
A spherical, underwater instrument pod used to make soundings and to measure conditions in the water has a diameter of $100 \mathrm{~mm}$ and dissipates $400 \mathrm{~W}$. (a) Estimate the...
There has been a lot of discussion regarding the relationship between Scholastic Aptitude Test (SAT) scores and test-takers family income (New York Times, August 27, 2009). It is generally believed...
22. Assume that the following current asset and current liability accounts apply to the Harden Company for the years 2021 and 2022 (note: the ??? in the table is a figure that you must determine)....
You have an opportunity to purchase a 5-story multifamily building which is presently vacant. The asking price is $500,000. After discussing the project with your architect and general contractor,...
An investment center of Lipscomb Corporation shows an operating income of $7,680 on total operating assets of $32,000. Required Compute the return on investment.
Vaughn Corporation has a desired rate of return of 9 percent. Ted Eason is in charge of one of Vaughns three investment centers. His center controlled operating assets of $2,300,000 that were used to...
Black smokers are found in the depths of the oceans. Thinking that the conditions in these smokers might be conducive to the formation of organic compounds, two chemists in Germany found the...
Suppose you were hired as an adviser to a developing country and you were versed in the theory of production, the historical role of medicine, and the modern-day health production function studies....
In 1986, the U.S. federal income tax system changed marginal tax rates so that the top federal marginal rate fell from 50 to 33 percent. From what you know about how fringe benefi ts are negotiated,...
Various commentators have suggested that only 15 to 20 percent of all health care services have been subject to rigorous, controlled investigation, that is, care based on what is commonly called...
Give examples of how health is produced from time and market goods.
A The owner of a small business selling and repairing cars which you patronise has just received a copy of his accounts for the current year. He is rather baffled by some of the items and as he...
After all foreign and U.S. taxes, a U.S. corporation expects to receive 2 pounds of dividends per share from a British subsidiary this year. The exchange rate at the end of the year is expected to be...
On October 1, 2014, the Dow Jones Industrial Average (DJIA) opened at 17,042 points. During that day it lost 237 points. On October 2 it lost 4 points. On October 3 it gained 209 points. Deter-mine...
Describe a serious ethical dilemma you have experienced. Use the 12 questions developed by Laura Nash to offer a resolution to the problem, even if your resolution is different from the original...
The following data relate to factory overhead cost for the production of 8,000 computers: If productive capacity of 100% was 10,000 hours and the factory overhead cost budgeted at the level of 8,000...
Osceola Textiles Corporation began May with a budget for 45,000 hours of production in the Weaving Department. The department has a full capacity of 60,000 hours under normal business conditions. The...
Osceola Textiles Corporation began May with a budget for 45,000 hours of production in the Weaving Department. The department has a full capacity of 60,000 hours under normal business conditions. The...
The Chaldean Riverfood Market has sales of $38,200, current assets of $8,100, net income of $2,600, fixed assets of $12,500, total debt of $10,600, and dividends of $915. What is the sustainable...
You found out that mow you are going Lo receive payments of 59,000 for the next 11 years. You will receive these payments at the beginning of each year The anmweal interest rabe will remadn constant...
b. Draw a profit or loss graph for selling a call contract with an exercise price of $13 and a $4 selling price (the premium). You may assume that the option is being evaluated on its expiration...

Oswalt Company calculated its return on investment as 13 percent. Sales are now $180,000, and the amount

Question:

Step by Step Answer:

Operating income Operating assets ROI Operating income 300000 13 Operating income Operati...View the full answer

Survey of Accounting

Students also viewed these Managerial Accounting questions