In 2020, Presser found an investment opportunity having an estimated ROI of 18%. After analyzing the...

 

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In 2020, Presser found an investment opportunity having an estimated ROI of 18%. After analyzing the opportunity, Presser decided not to proceed with the investment as overall ROI would decrease. Their 2020 income statement is provided: Sales revenue Cost of goods sold Gro margin Operating expenses Administrative Selling s Income from operations Presser Division Income Statement Year Ended June 30, 2020 4,280,000 7,200,000 48,000,000 31,600,000 16,400,000 11,480,000 4,920,000 The division has operating assets of $25.2 million at the end of 2020, which was a a5% increase over 2019 year end balance. 2 Ba. Calculate the performance measures for 2020 Presser division, ROI and residual 4 income. In 2020, Presser found an investment opportunity having an estimated ROI of 18%. After analyzing the opportunity, Presser decided not to proceed with the investment as overall ROI would decrease. Their 2020 income statement is provided: Sales revenue Cost of goods sold Gro margin Operating expenses Administrative Selling s Income from operations Presser Division Income Statement Year Ended June 30, 2020 4,280,000 7,200,000 48,000,000 31,600,000 16,400,000 11,480,000 4,920,000 The division has operating assets of $25.2 million at the end of 2020, which was a a5% increase over 2019 year end balance. 2 Ba. Calculate the performance measures for 2020 Presser division, ROI and residual 4 income.

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