chp11 Exercise 11-5 (Algo) Return on Investment (ROI) (LO11-1]...
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Accounting
chp11
Exercise 11-5 (Algo) Return on Investment (ROI) (LO11-1] Provide the missing data in the following table for a distributor of martial arts products: (Enter "Turnover" and "ROI" answers to 1 decimal place.) Alpha Charlie Division Bravo $ 320,000 $ 32.000 $ 48,240 Sales Net operating income Average operating assets Margin Turnover Return on investment (RON $ 358,000 5% 50 % 9% % 25.01% 18.01% Exercise 11-6 (Algo) Contrasting Return on Investment (ROI) and Residual Income (LO11-1, LO11-2) Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Sales Net operating income Average operating assets Division Osaka Yokohama $ 9,600,000 $ 26,000,000 $ 672,000 $2,340,000 $ 3,200,000 $13,000,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division Is 16%. Compute the residual income for each division Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each division, compute the return on investment (ROI) in terms of margin and turnover. Osaka Yokohama ROI Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Sales Average operating assets Net operating income Property, plant, and equipment (net) Division New South Queensland Wales $1,144,000 $ 2,220,000 5 520,000 $ 600,000 $ 125,840 $ 177,600 $ 252,000 $ 202,000 Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Which divisional manager seems to be doing the better job? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. (Round your answers to 2 decimal places.) Turnover ROI Queensland division New South Wales division Margin % % Required 2 >
chp11



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