ABC Company has established a target rate of return of 12% for all of its divisions. In 2021, Division A generated sales of $16,000,000 and expenses of $14,000,000. Total assets at the beginning of the year were $10,000,000, and total assets at the end of the year were $8,000,000. For 2021, what was Division A's return on investment (rounded to the nearest whole percent)?
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- The North Division. The division's desired rate of return is 10%. The financial information for the year 2021 includes total sales of RM6,000,000, operating income of RM1,900,000, total assets of RM16,000,000, and current liabilities of RM4,500,000. The tax rate is 35% and the weighted average cost of capital (WACC) is 10% Calculate and interpret the results on the following performance measurements for North division. i) Return on investment (ROI) ratioii) Residual income (RI)iii) Economics value added (EVA).Kaler Company has sales of $1,470,000, cost of goods sold of $800,000, other operating expenses of $213,000, average invested assets of $4,700,000, and a hurdle rate of 12 percent. Required: 1. Determine Kaler's return on investment (ROI), investment turnover, profit margin, and residual income. 2. Several possible changes Kaler could face in the upcoming year follow. Determine each scenario's impact on Kaler's ROI and residual income. (Note: Treat each scenario independently.) a. Company sales and cost of goods sold increase by 5 percent. b. Operating expenses increase by $86,000. c. Operating expenses decrease by 20 percent. d. Average invested assets decrease by $415,000. e. Kaler changes its hurdle rate to 9 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Req 2E Determine Kaler's return on investment (ROI), investment turnover, profit margin, and residual income. Note: Do not round your intermediate calculations. Enter…The 2020 income statement for the East Division of Procter Wells Company is as follows: Sales $1,800,000 Operating expenses 1,380,000 Net operating income 420,000 Interest expense 120,000 Earnings before taxes 300,000 Income tax expense (40%) 120,000 Net income $ 180,000 This division’s invested capital is $4,000,000. How much is the East Division’s return on investment?
- Solano Company has sales of $740,000, cost of goods sold of $490,000, other operating expenses of $46,000, average invested assets of $2,200,000, and a hurdle rate of 10 percent. Required: Determine Solano’s return on investment (ROI), investment turnover, profit margin, and residual income. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario’s impact on Solano’s ROI and residual income. (Note: Treat each scenario independently.) Company sales and cost of goods sold increase by 30 percent. Operating expenses decrease by $10,000. Operating expenses increase by 10 percent. Average invested assets increase by $420,000. Solano changes its hurdle rate to 16 percent.Solano Company has sales of $740,000, cost of goods sold of $490,000, other operating expenses of $46,000, average invested assets of $2.200,000, and a hurdle rate of 10 percent. Required: 1. Determine Solano's return on investment (ROI), Investment turnover, profit margin, and residual income. 2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario's impact on Solano's ROI and residual income. (Note: Treat each scenario independently) a. Company sales and cost of goods sold increase by 30 percent. b. Operating expenses decrease by $10,000. c. Operating expenses increase by 10 percent. d. Average invested assets increase by $420,000. e. Solano changes its hurdle rate to 16 percent. Complete this question by entering your answers in the tabs below. Reg Reg 2A Reg 2n Reg 20 Reg 20 Reg 2 Determine Solano's return on investment (ROI), investment turnover, profit margin, and residual income. (Loss amounts should be indicated with a minus sign.…Solano Company has sales of $620,000, cost of goods sold of $430,000, other operating expenses of $51,000, average invested assets of $1,900,000, and a hurdle rate of 10 percent.Required:1. Determine Solano’s return on investment (ROI), investment turnover, profit margin, and residual income.2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario’s impact on Solano’s ROI and residual income. (Note: Treat each scenario independently.)a. Company sales and cost of goods sold increase by 30 percent.b. Operating expenses decrease by $15,500.c. Operating expenses increase by 10 percent.
- Solano Company has sales of $700,000, cost of goods sold of $470,000, other operating expenses of $50,000, average invested assets of $2,100,000, and a hurdle rate of 9 percent. Required: 1. Determine Solano's return on investment (ROI), investment turnover, profit margin, and residual income. 2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario's impact on Solano's ROI and residual income. (Note: Treat each scenario independently.) a. Company sales and cost of goods sold increase by 30 percent. b. Operating expenses decrease by $8,000. c. Operating expenses increase by 10 percent. d. Average invested assets increase by $400,000. e. Solano changes its hurdle rate to 15 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Req 2E Determine Solano's return on investment (ROI), investment turnover, profit margin, and residual income. Note: Loss amounts should be indicated with a…For the year ending December 31, 2017, sales for Company Y were $73.91 billion. Beginning January 1, 2018 Company Y plans to invest 9.5% of their sales amount each year and they expect their sales to increase by 4% each year over the next three years.Company Y invests into an account earning an APR of 2.2% compounded continuously. Assume a continuous income stream.How much money will be in the investment account on December 31, 2020?Round your answer to three decimal places. billion dollarsHow much money did Company Y invest in the account between January 1, 2018 and December 31, 2020?Round your answer to three decimal places. billion dollarsHow much interest did Company Y earn on this investment between January 1, 2018 and December 31, 2020?Round your answer to three decimal places. If intermediate values are used, be sure to use the unrounded values to determine the answer. billion dollarsBajaj Ltd. reported the following statistics and results for 2020: Net operating income Return on sales $ 54,000 Asset turnover 2.5 Residual income $ 10,880 Required: 1. What was the value of Bajaj's average operating assets in 2020? Average operating assets 2 If the required rate of return is 7% what Is the ROI? (Round your answer to 2 decimal places.) ROI
- For the year ending December 31, 2017, sales for Company Y were $65.71 billion. Beginning January 1, 2018 Company Y plans to invest 6.5% of their sales amount each year and they expect their sales to increase by 4% each year over the next three years. Company Y invests into an account earning an APR of 1.9% compounded continuously. Assume a continuous income stream. How much money will be in the investment account on December 31, 2020? Round your answer to three decimal places. billion dollars How much money did Company Y invest in the account between January 1, 2018 and December 31, 2020? Round your answer to three decimal places. billion dollars How much interest did Company Y earn on this investment between January 1, 2018 and December 31, 2020? Round your answer to three decimal places. If intermediate values are used, be sure to use the unrounded values to determine the answer. billion dollars Submit AnswerFor the year ending December 31, 2017, sales for Company Y were $72.11 billion. Beginning January 1, 2018 Company Y plans to invest 8.5% of their sales amount each year and they expect their sales to increase by 7% each year over the next three years. Company Y invests into an account earning an APR of 2.0% compounded continuously. Assume a continuous income stream. How much money will be in the investment account on December 31, 2020? Round your answer to three decimal places. X billion dollars How much money did Company Y invest in the account between January 1, 2018 and December 31, 2020? Round your answer to three decimal places. billion dollars How much interest did Company Y earn on this investment between January 1, 2018 and December 31, 2020? Round your answer to three decimal places. If intermediate values are used, be sure to use the unrounded values to determine the answer. billion dollars TEACHER Submit AnswerFor the year ending December 31, 2017, sales for Corporation Y were $68.01 billion. Beginning January 1, 2018 Corporation Y plans to invest 7.5% of their sales amount each year and they expect their sales to increase by 6% each year over the next three years. Corporation Y invests into an account earning an APR of 1.4% compounded continuously. Assume a continuous income stream. How much money will be in the investment account on December 31, 2020? Round your answer to three decimal places. billion dollars How much money did Company Y invest in the account between January 1, 2018 and December 31, 2020? Round your answer to three decimal places. billion dollars How much interest did Company Y earn between January 1, 2018 and December 31, 2020? Round your answer to three decimal places. If intermediate values are used, be sure to use the unrounded values to determine the answer. billion dollars Submit Answer View Previous Question Question 10 of 10 Home My Assignments +Request Extension…