Sales Contribution margin Operating income Average operating assets Weighted average cost of capital Sprint Company has...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sales Contribution margin Operating income Average operating assets Weighted average cost of capital Sprint Company has a target ROI of 20 percent. a) Calculate the following measures for Division A: (2 points each) i. Margin ratio: ii. iii. Sporadic Company has the following data for 2021: Division A $400,000 160,000 80,000 320,000 15% V. Turnover ratio: ROI: iv. Residual income: EVA: b) Compare and discuss the advantages and disadvantages of the following performance measures: ROL, EVA, and Residual Income. (5 points) Sales Contribution margin Operating income Average operating assets Weighted average cost of capital Sprint Company has a target ROI of 20 percent. a) Calculate the following measures for Division A: (2 points each) i. Margin ratio: ii. iii. Sporadic Company has the following data for 2021: Division A $400,000 160,000 80,000 320,000 15% V. Turnover ratio: ROI: iv. Residual income: EVA: b) Compare and discuss the advantages and disadvantages of the following performance measures: ROL, EVA, and Residual Income. (5 points)
Expert Answer:
Answer rating: 100% (QA)
a Calculation of performance measures for Division A i Margin ratio Contribution Margin Sales 160000 400000 04 or 40 ii Turnover ratio Sales Average operating assets 400000 320000 125 times iii ROI Op... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0078025402
11th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
Students also viewed these accounting questions
-
The Coca-Cola Company is organized geographically and defines reportable operating segments as regions of the world. The following information was extracted from Note 19 Operating Segments in the...
-
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2. Question not attempted. Determine the following...
-
I thought evaluating performance would be easier than this. I have three vice presidents, operating the same business in three different countries. I need to be able to compare them in order to...
-
Jane Doe is single and claims 2 withholding allowances. If her weekly gross earning is $1,450, then determine the Federal Withholding Tax.
-
Explain how IRD spectroscopy could be used to distinguish between these compounds: CH;CH,C=CH a) CH,CH,CH=CH; and CH3 H- b) CH, nd CH3 CCH3 CH c) and d) CH.CH,CH,C,NH, and CH.CH,NHCH,CH,
-
Arthur Samuels, CPA, agreed to perform an audit of a new client engaged in the manufacture of power tools. After some preliminary discussion of the purposes of the audit and the basis for...
-
What pleadings the defendant may file in response to the complaint?
-
A machine shop has two machines, A and B. Four jobs need to be processed through machine A first and B second. Job 1 will take one hour on machine A and three hours on machine B. Job 2 will take...
-
a)Discuss the relevance and framework of credit quality analysis for a target company. (3marks)
-
What are the benefits of businesses? Can a business negatively affect society? Give one example of a business that is benefiting society and one example of a negative effect.
-
Answer this please its urgent thank you 1/d0+1/di=1/f Use the thin lens equation to predict the distance of the images for case #1, #2 and #3 given the following information: Type of Lens Focal...
-
What are the five principal types of residential developments? Write a short description of each. Explain the steps involved in a feasibility and market analysis for a proposed shopping center.
-
The annual report for Malibu Beachwear reported the following transactions affecting stockholders' equity: a. Purchased $351,900 of common stock now held in treasury. b. Declared cash dividends in...
-
Epson produces color cartridges for inkjet printers. Suppose cartridges are sold to mail - order distributors for $ 5 . 2 0 each. Total fixed costs per year are $ 7 5 2 , 4 0 0 . Variable cost per...
-
Presented below is the balance sheet for HHD , Incorporated, at December 3 1 , 2 0 2 4 . Current assets$ 6 4 4 , 0 0 0 Investments 5 3 3 , 0 0 0 Property, plant, and equipment 2 , 3 0 8 , 0 0 0...
-
Two rival companies sell software packages that are perfect substitutes. The software is sold over the web as a download, so the marginal cost and fixed costs are zero. The demand for the software is...
-
Suppose Able, Incorporated, terminated its S election on August 28, 2020. At the end of the S corporation's short tax year ending on August 28, John Denver ( the only shareholder's stock basis and...
-
One study found that the elderly who do not have children dissave at about the same rate as the elderly who do have children. What might this finding imply about the reason the elderly do not dissave...
-
An art display set up for the City of Coyote was recorded within the General Fund and generated revenues of $9,000 but had expenditures of $45,000 ($15,000 in expenses and $30,000 to buy land for the...
-
Phelps, Inc. owns 85 percent of Satellite Corporation's voting stock. The acquisition price exceeded book and fair value by $80,000 and was appropriately attributed to goodwill. Satellite holds 20...
-
What is the SEC's relationship to the Public Company Accounting Oversight Board?
-
Why are ethics crucial in accounting?
-
Why are ethics and social responsibility valuable to organizations?
-
Who sets U.S. accounting rules?
Study smarter with the SolutionInn App