Westerville Company Chap. 11

# Westerville Company Chap. 11 - Assignment Print View 1 of...

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Assignment Print View 1 of 30 4/19/2016 5:15 PM

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Required: 1. What is last year’s margin? References Worksheet Learning Objective: 11-01 Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI. Foundational 11-1 Learning Objective: 11-02 Compute residual income and understand its strengths and weaknesses. Required: 1. What is last year’s margin? Assignment Print View 2 of 30 4/19/2016 5:15 PM
1. Last year’s margin is: Margin = Net operating income Sales = \$300,000 = 20% \$1,500,000 Assignment Print View 3 of 30 4/19/2016 5:15 PM

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2. What is last year’s turnover? (Round your answer to 1 decimal place.) References Worksheet Learning Objective: 11-01 Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI. Foundational 11-2 Learning Objective: 11-02 Compute residual income and understand its strengths and weaknesses. 2. What is last year’s turnover? (Round your answer to 1 decimal place.) Assignment Print View 4 of 30 4/19/2016 5:15 PM
2. Last year’s turnover is: Turnover = Sales Average operating assets = \$1,500,000 = 1.5 \$1,000,000 Assignment Print View 5 of 30 4/19/2016 5:15 PM

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3. What is last year’s return on investment (ROI)? References Worksheet Learning Objective: 11-01 Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI. Foundational 11-3 Learning Objective: 11-02 Compute residual income and understand its strengths and weaknesses. 3. What is last year’s return on investment (ROI)? Assignment Print View 6 of 30 4/19/2016 5:15 PM
3. Last year’s return on investment (ROI) is: ROI = Margin × Turnover = 20% × 1.5 = 30% Assignment Print View 7 of 30 4/19/2016 5:15 PM

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4. What is the margin related to this year’s investment opportunity? References Worksheet Learning Objective: 11-01 Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI. Foundational 11-4 Learning Objective: 11-02 Compute residual income and understand its strengths and weaknesses. 4. What is the margin related to this year’s investment opportunity? Assignment Print View 8 of 30 4/19/2016 5:15 PM
4. The margin for this year’s investment opportunity is: Margin = Net operating income Sales = \$48,000 = 16% \$300,000 Assignment Print View 9 of 30 4/19/2016 5:15 PM

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5. What is the turnover related to this year’s investment opportunity? (Round your answer to 1 decimal place.) References Worksheet Learning Objective: 11-01 Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.
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