Safari File Edit History dow Help op Co. Dashboard Mail (1) Personal Calendar 24

Question

Safari File Edit History dow Help op Co. Dashboard Mail (1) Personal Calendar 247 Sup (46099-201740) [ACC- US The Mrs. Potts Divi current year financial data. Sales were $16,640,000; net operating income was s operating assets were $4,000,000. The company's minimum required rate of return is 18%. FOLLOWING TO ANSWER QU EST TIONS 21 THROUGH 24 ision is segment of a large, multinational company. Mrs. Potts reported the following About Timeline Grades Live News Teams Students Links Timer 68 minutes, 59 sec Started at 11.54:34 399,360; and average Mrs. Potts margin is closest to: Question list 26,4% 10.0% 2.4% O Question 1.11 O Question 1.12 O Question 1.13 O Question 1.14 Questor, 1 15 O Question 1.16 o Question 1.17 O Question 1.19 Question 1.20 O Question 1.21 O Question 1.22 d) Question 123. Question 1.22 Based upon the information given in question 21 above, Mrs. Potts turnover is closest to: 23 questions r Last question submitted a 3.78 41.67

Explanation / Answer

Q21 :

Margin= Net Operating income/ Sales

            =$399,360/$16,640,000

                =2.4%

Hence 3rd Option Correct

Q22:

Turnover = Sales/Average Assets

                =$16,640,000/$4,000,000

                =4.16

Q23:

ROI= Net Operating income/ Average Assets

=$399,360/$4,000,000

=9.98 % nearest to 10%

Hence Option 1 Correct

Q24:

Residual income= Operating Income - (Average Operating Assets x Target Rate of Return).

                            =$399,360 –($4,000,000 x 18%)

                            =$399,360-$720,000

                        = $        (320,640)

Hence Option 1 Correct

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