acctfinalnotes-1 - = Op. Income (Op. Assets X Desired ROI)...

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Sales Rev. -COGS___ Gross Margin Net Income Calculating % Change: (Alt. Measure- Base Measure)/  Base Meas Assets       =       Equity Cash+Inv.+Manf.Eq+Off.  Furn= Common Stock +  Retained Earn Inc Stmnt Contr. Margin fmt: Var Cost per unit Sales Rev: -Var Costs: C.m.: -Fix Costs: Net Incm: CH9-   ROI  =  Operating Income             Op. Assets Margin =  Op. Income                   Sales Turnover =  Sales   Op. Assets ROI = Margin X Turnover Increase ROI: Incr. Sales, Decr.  Exp., Decr. Invest. Suboptimization:  Man. Evaluated  based on Dept. ROI,  Man doesn’t incr.  invest even if Co.  ROI incr. b/c dept.  ROI is decreased. Residual Income
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Unformatted text preview: = Op. Income (Op. Assets X Desired ROI) _ R.I. w/ Addtl Invest : 4mil Invest, 600k addtl Invest, 14% des. ROI 720k + 600k --(8,000,000 x .14) 200,000 CH10- Annuity: o Equal pmt. amounts o Equal time intervals o Constant Rate of Return Net PV= PV all cash inflows Minus: PV of cash outflows Internal Rate of Return: PV cash inflows=PV outflows PV Index= PV of Cash inflows PV outflows Payback Period= Net Cost Invest. Annul Net Cash Inflows Unadjusted R of R= Avg. incrmntl increase In annual net income _ Net Cost of original Investment...
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