Question
In: Accounting
1. Consider the data for each of the following four independent companies. Calculate the missing values...
1. Consider the data for each of the following four independent companies. Calculate the missing values in the table below. For margin and ROI, enter your answers as percentages, rounded to two decimal places. For example, the decimal value .03827 would be entered as "3.83" percent. For turnover, enter your answer as a decimal value rounded to two decimal places.
| A | B | C | D | |||||
| Revenue | $12,500 | $48,000 | $96,000 | $ | ||||
| Expenses | $10,000 | $ | $90,240 | $ | ||||
| Operating income | $2,500 | $12,000 | $ | $ | ||||
| Assets | $50,000 | $ | $48,000 | $9,800 | ||||
| Margin | % | 25 | % | % | 6.00 | % | ||
| Turnover | 0.50 | 2.00 | ||||||
| ROI | % | % | % | % |
2. Assume that the cost of capital is 9 percent for each of the four firms. Compute the residual income for each of the four firms. If the residual income is negative, enter a negative amount.
| A's residual income | $ |
| B's residual income | $ |
| C's residual income | $ |
| D's residual income | $ |
Solutions
Expert Solution
For turnover, enter your answer as a decimal value rounded to two decimal places.
| A | B | C | D | |||||
| Revenue | $12,500 | $48,000 | $96,000 | 1176/.06 = 19600 | ||||
| Expenses | $10,000 | $36000 | $90,240 | 18424 | ||||
| Operating income | $2,500 | $12,000 | $5760 | 9800*12% = 1176 | ||||
| Assets | $50,000 | 12000/.125 = 96000 | $48,000 | $9,800 | ||||
| Margin | 2500/12500 = 20 | % | 25 | % | 5760/96000 = 6 | % | 6.00 | % |
| Turnover | 12500/50000 = 0.25 | 0.50 | 2 | 2.00 | ||||
| ROI | 2500/50000 = 5% | % | 25*.50 = 12.50 | % | 12 | % | 12 | % |
2. Assume that the cost of capital is 9 percent for each of the four firms. Compute the residual income for each of the four firms. If the residual income is negative, enter a negative amount.
| A's residual income | $2500-(50000*9%) = -2000 |
| B's residual income | $12000-8640 = 3360 |
| C's residual income | $5760-4320 = 1440 |
| D's residual income | $1176-882 = 294 |
ekkarill92 answered 2 years agoRelated Solutions
1. Consider the data for each of the following four independent companies. Calculate the missing values...
1. Consider the data for each of the following
four independent companies. Calculate the missing values in the
table below. For margin and ROI, enter your answers as percentages,
rounded to two decimal places. For example, the decimal value
.03827 would be entered as "3.83" percent. For turnover, enter your
answer as a decimal value rounded to two decimal places.
A
B
C
D
Revenue
$10,000
$49,000
$96,000
$
Expenses
$8,000
$
$90,240
$
Operating income
$2,000
$12,250
$
$...
Margin, Turnover, ROI Required: 1. Consider the data for each of the following four independent companies....
Margin, Turnover, ROI
Required:
1. Consider the data for each of the following
four independent companies. Calculate the missing values in the
table below. For margin and ROI, enter your answers as percentages,
rounded to two decimal places. For example, the decimal value
.03827 would be entered as "3.83" percent. For turnover, enter your
answer as a decimal value rounded to two decimal places.
A
B
C
D
Revenue
$12,500
$49,000
$96,000
$fill in the blank 1
Expenses
$10,000
$fill...
Fill in the missing amounts for the following 4 companies. Each case is independent of the...
Fill in the missing amounts for the following 4 companies. Each
case is independent of the others. Assume that only one product is
being sold by each company:
Company A
Company B
Company C
Company D
Units Sold
600
900
Sales in Dollars
$30,000
$63,000
$235,000
$
Total Variable Expenses
$6,600
$
$
$135,000
Per Unit C/M
$
$60
$270
$140
Total Fixed Expenses
$20,600
$35,000
$144,000
$
Net Operating Income (Loss)
$
$7,000
$(9,000)
$(25,000)
For each of the following independent cases (1–4), compute the missing values. (Enter all amounts as...
For each of the following independent cases (1–4), compute the
missing values. (Enter all amounts as positive values.)
Case 1
Case 2
Case 3
Case 4
Beginning raw materials
$5,400
$23,000
$106,000
Raw
material purchases
54,000
11,850
42,640
Indirect
materials issued
600
1,100
1,400
2,800
Ending
raw materials
1,200
4,150
93,700
Direct
materials used
13,900
33,520
Direct
labor
32,000
122,350
Manufacturing overhead
54,000
40,250
30,080
541,730
Total
current manufacturing costs
75,600
94,600
Beginning
work in process
48,000
36,600
101,820
Ending...
Using the table below calculate the missing values.
Using the table below calculate the missing
values.YearNominal GDPReal GDPGDP Deflator1 (2007)3,753____________812 (2008)4,5515,009____________3 (2009)5,150____________100.004 (2010)5,6665,255____________5 (2011)____________6,175 158Enter the missing values : the inflation/growth rates as
indicated below.Inflation rate year 1-2 ____________Inflation rate year 3-4 ____________Real growth rate yr. 2-3 ____________Real growth rate yr. 4-5 ____________
Cost-Volume-Profit Relations: Missing Data Following are data from 4 separate companies. Supply the missing data in...
Cost-Volume-Profit Relations: Missing Data
Following are data from 4 separate companies. Supply the missing
data in each independent case
Case A
Case B
Case C
Case D
Unit Sales
1,000
800
Answer
Answer
Sales revenue
$20,000
Answer
Answer
$60,000
Variable cost per unit
$10
$2
$10
Answer
Contribution margin
Answer
$800
Answer
Answer
Fixed Costs
$8,100
Answer
$60,000
Answer
Net income
Answer
$600
Answer
Answer
Unit contribution margin
Answer
Answer
Answer
$13
Break-even point (units)
Answer
Answer
4,000
2,000
Margin...
Cost-Volume-Profit Relations: Missing Data Following are data from 4 separate companies. Supply the missing data in...
Cost-Volume-Profit Relations: Missing Data
Following are data from 4 separate companies. Supply the missing
data in each independent case.
Case 1
Case 2
Case 3
Case 4
Sales revenue
$90,000
$150,000
Answer
Answer
Contribution margin
$45,000
Answer
$40,000
Answer
Fixed costs
$30,000
Answer
Answer
Answer
Net income
Answer
$15,000
$24,000
Answer
Variable cost ratio
Answer
0.40
Answer
0.60
Contribution margin ratio
Answer
Answer
0.25
Answer
Break-even point (dollars)
Answer
Answer
Answer
$150,000
Margin of safety (dollars)
Answer
Answer
Answer
$125,000
Cost-Volume-Profit Relations: Missing Data Following are data from 4 separate companies. Supply the missing data in...
Cost-Volume-Profit Relations: Missing Data
Following are data from 4 separate companies. Supply the missing
data in each independent case
Case A
Case B
Case C
Case D
Unit Sales
1,000
800
Answer
Answer
Sales revenue
$20,000
Answer
Answer
$60,000
Variable cost per unit
$10
$2
$10
Answer
Contribution margin
Answer
$800
Answer
Answer
Fixed Costs
$8,100
Answer
$60,000
Answer
Net income
Answer
$600
Answer
Answer
Unit contribution margin
Answer
Answer
Answer
$13
Break-even point (units)
Answer
Answer
4,000
2,000
Margin...
Cost-Volume-Profit Relations: Missing Data Following are data from 4 separate companies. Supply the missing data in...
Cost-Volume-Profit Relations: Missing Data
Following are data from 4 separate companies. Supply the missing
data in each independent case.
Case 1
Case 2
Case 3
Case 4
Sales revenue
$100,000
$90,000
Answer
Answer
Contribution margin
$40,000}
Answer
$20,000
Answer
Fixed Costs
$24,000
Answer
Answer
Answer
Net income
Answer
$7,000
$9,000
Answer
Variable cost ratio
Answer
0.50
Answer
0.20
Contribution margin ratio
Answer
Answer
0.40
Answer
Break-even point (dollars)
Answer
Answer
Answer
$20,000
Margin of safety (dollars)
Answer
Answer
Answer
$30,000
In the following chart, fill in the missing cells for each of the following independent scenarios....
In the following chart, fill in the missing cells for each of
the following independent scenarios.
Do not enter dollar signs or commas in the input boxes.
Round all answers to the nearest whole number, except for the CM
Ratio. Round the CM Ratio to 2 decimal places.
Scenario
Revenue
Variable Costs
Fixed Costs
Total Costs
Operating Income
CM Ratio
Contribution Margin
1
$610
$Answer
$490
$630
$-20
Answer%
$Answer
2
$1,800
$Answer
$Answer
$1,600
$Answer
55.00%
$Answer
3
$Answer...
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