Noriaki's Canning manufactures cans used in a variety of industries. The company split its operations into...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Noriaki's Canning manufactures cans used in a variety of industries. The company split its operations into two divisions: beverages and food products. The information for the past year is as follows: Net Sales Operating Income Average Total Assets Beverages $1,481,800 $266,900 $665,200 Food Products $2,193,200 $436,400 $964,900 Noriaki's Canning management has targeted a 32% rate of return. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Calculate each division's ROI. Division Operating Income / Average Total Assets = Beverages Food Products 2. Calculate each division's profit margin ratio. Food Products Division Operating Income / Net Sales = Profit Margin Ratio (%) Beverages 3. Compute each divisions' assets turnover ratio. Division Beverages Food Products 1 Division Beverages Food Products = ROI (%) Net Sales / Average Total Assets Asset Turnover Ratio = 4. Using the information from Steps 2 & 3, double check your ROI as computed in Step 1. (Note: these values are using rounded answers and therefore the final percent may be slightly different due to rounding errors.) X Profit Margin Ratio (%) X Asset Turnover Ratio = X ROI (%) Noriaki's Canning manufactures cans used in a variety of industries. The company split its operations into two divisions: beverages and food products. The information for the past year is as follows: Net Sales Operating Income Average Total Assets Beverages $1,481,800 $266,900 $665,200 Food Products $2,193,200 $436,400 $964,900 Noriaki's Canning management has targeted a 32% rate of return. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Calculate each division's ROI. Division Operating Income / Average Total Assets = Beverages Food Products 2. Calculate each division's profit margin ratio. Food Products Division Operating Income / Net Sales = Profit Margin Ratio (%) Beverages 3. Compute each divisions' assets turnover ratio. Division Beverages Food Products 1 Division Beverages Food Products = ROI (%) Net Sales / Average Total Assets Asset Turnover Ratio = 4. Using the information from Steps 2 & 3, double check your ROI as computed in Step 1. (Note: these values are using rounded answers and therefore the final percent may be slightly different due to rounding errors.) X Profit Margin Ratio (%) X Asset Turnover Ratio = X ROI (%)
Expert Answer:
Answer rating: 100% (QA)
Lets calculate the requested ratios step by step 1 Return on Investment ROI Beverages Food Produc... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
Students also viewed these finance questions
-
The Thompson Toy Company manufactures toy building block sets for children. Thompson is planning for 2017 by developing a master budget by quarters. Thompsons balance sheet for December 31, 2016,...
-
Chromalox Instruments and Controls, located in LaVergne, Tennessee, is a manufacturer of industrial process controllers, monitors, and industrial and military control panels. Chromalox products are...
-
The values of Alabama building contracts (in millions of dollars) for a 12-month period follow: 240 350 230 260 280 320 220 310 240 310 240 230 a. Construct a time series plot. What type of pattern...
-
A stationary platform which can rotate freely about a vertical axis (Fig. 1.72) supports a motor M and a balance weight N. The moment of inertia of the platform with the motor and the balance weight...
-
1. Do you feel that David was justified in insisting that the job, not the person, be evaluated? Discuss. 2. Do you believe that there is a maximum rate of pay for every job in an organization,...
-
Write a Monte Carlo code for a system of \(N\) hard spheres of diameter \(D\) on a one-dimensional ring of length \(L\) with periodic boundary conditions. Calculate the pair correlation function and...
-
Being a prudent investor, Sally Perkins always investigates a company thoroughly before purchasing shares of its stock for investment. Ms. Perkins is interested in the common stock of Plunge...
-
a. Write a story problem for the expression 6 x b. Find the value of the expression. Show or explain your work. da f
-
Use dynamic programming to solve the Northern Airplane Co. production scheduling problem presented in Sec. 9.1 (see Table 9.7). Assume that production quantities must be integer multiples of 5.
-
You host a service with two Azure virtual machines. You discover that occasional outages cause your service to fail. What two actions can you do to minimize the impact of the outages?
-
The US 2 year rate is 0.147% and the UK 2 Year rate is -0.133%. If the USD/JPY=106.36 what would you expect the 2 year forward rate to be for the USD/JPY?
-
Jill owns a condominium which is available for rental all year. She needs to replace the carpeting before the next tenant moves in. Jill decided to install laminate wood floors for a cost of $1,500....
-
Sheffield Corp. issued $7080000 of 11%, ten-year convertible bonds on July 1, 2020 at 96.1 plus accrued interest. The bonds were dated April 1, 2020 with interest payable April 1 and October 1. Bond...
-
Which of the following is true about layered protocol architecture? O The higher layers provide a service for the lower layers The layers are numbered from the top down (top layer is layer 1) All the...
-
11.1 Write a program that displays the retail price of an item. The program asks the user for the item's wholesale price and the number of days it takes to sell the item. The program then calculates...
-
Does a structure declaration cause a structure variable to be created?
-
On October 31 Juanita Ortega, owner of Outback Guide Service, received a bank statement dated October 30. Juanita found the following: 1. The checkbook has a balance of $2,551.34. 2. The bank...
-
Hi-Speed Electronics manufactures low-cost, consumer-grade computers. It sells these computers to various electronics retailers to market under store brand names. It manufactures two computers, the...
-
What are the advantages of the contribution margin format based on variable costing compared to the traditional format based on full absorption costing?
-
Refer to the data in Exercise 8-15. Assume that beginning inventory is 50 percent complete with respect to materials and 30 percent complete with respect to conversion costs. Required a. Compute the...
-
Whenever Aliza buys a flashlight, she also always buys exactly two batteries along with it. Any more than two batteries will serve no purpose, because she will not be able to use them in the...
-
State governments in India levy a value-added tax on the sale of goods. The rate of this sales tax varies by type of good and by state. In Maharashtra, the general rate of sales tax is \(12.5 \%\),...
-
Divit enjoys watching team sports and considers tickets to kabaddi and badminton games to be perfect substitutes. Show his preference map. What is his utility function?
Study smarter with the SolutionInn App