Question: Hello, please help with these. Correct answers only . Comment if any questions Thank you DATA TABLE QUESTIONS Benjamin Moore is a national paint manufacturer

Hello, please help with these. Correct answers only . Comment if any questions

Thank you

Hello, please help with these. Correct answers only . Comment if anyquestions Thank you DATA TABLE QUESTIONS Benjamin Moore is a national paint

DATA TABLE

manufacturer and retailer. The company is segmented into five divisions: Paint Stores

QUESTIONS

(branded retail locations). Consumer (paint sold through stores such as Canadian Tire,Home Hardware, and Lowe's), Automotive (sales to auto manufacturers), International, and Administration.

Benjamin Moore is a national paint manufacturer and retailer. The company is segmented into five divisions: Paint Stores (branded retail locations). Consumer (paint sold through stores such as Canadian Tire, Home Hardware, and Lowe's), Automotive (sales to auto manufacturers), International, and Administration. The following selected divisional information for the company's two largest divisions: Paint Stores and Consumer (in thousands of dollars). Requirements Round all calculations to two decimal places. 1. Calculate each division's ROI. 2. Calculate each division's profit margin. Interpret your results. 3. Calculate each division's asset turnover. Interpret your results. 4. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results. 5. Calculate each division's RI. Interpret your results, and offer recommendations for any division with negative RI. 6. Calculate each division's EVA. Interpret your results. 7. Describe the conceptual and computational similarities and differences between RI and EVA. 8. Total asset data were provided in this problem. If you were to gather this information from an annual report, how would you measure total assets? Describe your measurement choices and some of the pros and cons of those choices. 9. Describe some of the factors that management considers when setting its minimum target rate of return. 10. Explain why some firms prefer to use Rl rather than ROI for performance measurement. 11. Explain why budget versus actual performance reports are insufficient for evaluating the performance of investment centres. Information Current Operating Income Total Assets Sales Liabilities Paint stores $ 3,920,000 $ 490,000 $ 1,400,000 $ 180,000 1,600,000 350,000 600,000 Consumer 1,200,000 Requirement 6. Calculate each division's EVA. Interpret your results. (Use parentheses or a minus sign for negative EVA's.) -C EVA Paint -10 % - Cons. % ] - Interpret your results. creating more income than the company's shareholders and long-term creditors expect. Requirement 7. Describe the conceptual similarities and differences between RI and EVA. equations calculate(s) whether any income was created by the division above and beyond expectations. V looks at income through the eyes of management, while looks at it through the eyes of the stockholders and long-term creditors. Describe how the EVA computation differs from the Rl computation. The EVA calculation uses V where the Rl calculation uses V. Why? Because the portion of income paid to the government available investors and long-term creditors. Unlike RI, within the EVA computation, total assets are reduced by short-term creditors paid in the immediate future and V. Why? Because funds owed to be available for generating income in the long run. Since focuses on investors and creditors, it's calculation uses the V, which represents the investors and creditors expected rate of return. Requirement 8. Total asset data were provided in this problem. If you were to gather this information from an annual report, how would you measure total assets? Describe your measurement choices and some of the pros and cons of those choices. Most companies use the asset balance since the income used in the ROI calculation is earned over the year. Management must also decide whether it wishes to use the gross book value of assets or the net book value of assets. The book value is often used because it is easily pulled from the balance sheet. However, ROI using that value will artificially rise over time due to Requirement 9. Describe some of the factors that management considers when setting its minimum rate of return. Requirement 10. Explain why some firms prefer to use Rl rather than ROI for performance measurement. RI does a better job of Requirement 11. Explain why budget versus actual performance reports are insufficient for evaluating the performance of investment centres. Investment centres are responsible for V. Budget versus actual performance reports are insufficient because they do not measure

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