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I have uploaded a file. I need work for all answers! Thank you!

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Accounting 202
Spring 2013
Name____________________________________
1.
Operating
Average
Sales
Income
Assets
ROI
Margin
Turnover
Case 1
$326,000
(a)
$407,500
12%
(b)
(c)
Case 2
(d)
$60,000
(e)
(f)
12.5%
.64
Calculate the missing numbers for each case independently.
Each letter is worth 1 point.
2.
Current data for two investment centers at North Pole Inc. are presented below.
Hermey
Buddy
Sales
$550,000
$925,000
Operating income
$118,000
$152,000
Average assets
$690,000
$1,250,000
Santa Claus has developed a new toy that he would like to begin producing.
The budget for the
new toy reflects sales of $320,000; total expenses of $281,000; and required average assets of
$280,000.
Which of the following is true if Santa sets the minimum rate of return at 13%?
4 points
a.
Neither Hermey nor Buddy will want the new toy if they are evaluated using return on
investment.
b.
Neither Hermey nor Buddy will want the new toy if they are evaluated using residual
income.
c.
Hermey would want the new toy but Buddy would not if they are evaluated using return
on investment.
d.
Both Hermey and Buddy would want the new toy if they are evaluated using residual
income.

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