Question: Required information Excel Analytics 11-1 (Static) Return on Investment (ROI) [LO11-1] [The following information applies to the questions displayed below.] Edman Company is a merchandiser
Required information Excel Analytics 11-1 (Static) Return on Investment (ROI) [LO11-1] [The following information applies to the questions displayed below.] Edman Company is a merchandiser that has provided the following balance sheet and income statement for this year. Beginning Balance Ending Balance Assets Cash 62,800 $ 150,000 Accounts receivable 160,000 180,000 Inventory 230,000 240,000 Property, plant & equipment (net) 833,000 793,000 Other assets 37,000 37,000 Total assets $1,322,800 $1,400,000 Liabilities & Stockholders' Equity Accounts payable Bonds payable Common stock Retained earnings 70,000 80,000 550,000 550,000 410,000 410,000 292,800 360,000 Total liabilities & stockholders' equity $1,322,800 $1,400,000 Retained earnings Total liabilities & stockholders' equity 292,800 360,000 $1,322,800 $1,400,000 Sales Variable expenses: Cost of goods sold Variable selling expense. This Year $2,500,000 1,600,000 240,000 Total variable expenses 1,840,000 Contribution margin 660,400 Fixed expenses: Fixed selling expenses 220,000 Fixed administrative expenses 300,000 Total fixed expenses 520,000 Net operating income 140,000 Interest expense (81) 44,000 Net income before tax 96,000 Tax expense (308) Net income 28,800 67,200 Click here to download the Excel template, which you will use to answer the questions that follow. Click here for a a brief tutorial on Charts in Excel Excel Analytics 11-1 (Static) Part 8 8. Refer to the "Requirement 8 DuPont Diagram" tab within your template. For alternative 3, complete the diagram by using appropriate formulas and reference cells. (In some instances your formulas and reference cells will refer to the Requirement 7 Financials tab.) a. Which choice shows the formula used to compute the return on investment? b. What is this alternative's estimated margin, turnover, and return on investment (ROI)? c. If the company pursues this alternative, would it cause next year's ROI to be greater than, less than, or equal to this year's ROI computed in Requirement 2b)? Complete this question by entering vour anewne 110 ok ences what it thie aitornativo e octimaran marnin turnnuar ann return on inuoermont Required information Complete this question by entering your answers in the tabs below. Red BA Req 88. Req BC Which choice shows the formula used to compute the return on investment? Return on investment -K7/K22 -K7-K22 -K7-K22 K7K22 Req LA Req 88> ' Dre Sa 10 Navt 10 what ie thie atornato e actimaton marin himnuar and return on inuoeimant Required Information Complete this question by entering your answers in the tabs below. Req BA Req 88 Req BC What is this alternative's estimated margin, turnover, and return on investment (ROI)? (Round your answers to 2 decimal places.) bk Margin % Turnover nces Return on investment (ROI) % Required information Complete this question by entering your answers in the tabs below. Req BA Req 88 RBC If the company pursues this alternative, would it cause next year's ROI to be greater than, less than, or equal to this year's ROI (as computed in Requirement 2b)? Greater than Less than Equal to
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