Coolbrook Company has the following information available for the past year: River Division...
Question:
Coolbrook Company has the following information available for the past year:
| River Division | Stream Division | |
| Sales revenue | $1,201,000 | $1,810,000 |
| Cost of goods sold and operating expenses | $888,000 | $1,297,000 |
| Net operating income | $313,000 | $513,000 |
| Average invested assets | $1,090,000 | $1,550,000 |
The company's hurdle rate is 6.51 percent.
Required:
Calculate return on investment (ROI) and residual income for each division for last year.
Return on Investment:
Investors look for a higher return on investment ratio while investing because it indicates that the investment has the potential to generate higher returns.
{eq}ROI \ = \ \dfrac{Net \ operating \ income}{Average \ invested \ assets} \ \times \ 100 {/eq}
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerRiver Division:
{eq}ROI \ = \ \dfrac{Net \ operating \ income}{Average \ invested \ assets} \ \times \ 100 \\ ROI \ = \...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Return on Investment: Definition, Formula & Example
from
Chapter 25 / Lesson 6
531K
Find out how to calculate the return on investment. View the return on investment formula applied to real-world examples and explore how to analyze ROI.
Related to this Question
- Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $1,202,000 $1,810,000 Cost of goods sold and operating expenses 898,000 1,281,000 Net operating income $304,000 $529,000 Average inv
- Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $1,210,000 $1,805,000 Cost of goods sold and operating expenses 896,000 1,284,000 Net operating income $314,000 $521,000 Average inv
- Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $1,202,000 $1,810,000 Cost of goods sold and operating expenses $898,000 $1,281,000 Net operating income $304,000 $529,000 Average in
- Coolbrook Company has the following information available for the past year: River Division Stream Division Sales Revenue $1,203,000 $1,806,000 Cost of goods sold and operating expenses $888,000 $1,2
- Coolbrook Company has the following information available for the past year: River Division Stream Division Sales Revenue $1,201,000 $1,802,000 Cost of goods sold and operating expenses 889,000 1,283
- Coolbrook Company has the following information available for the past year. River Division Stream Division Sales revenue $1,202,000 1,810,000 Cost of goods sold and operating expenses 898,000 1,284,
- Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $1,211,000 $1,803,000 Cost of goods sold and operating expenses 897,000 1,284
- Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $1,209,000 $1,805,000 Cost of goods sold and operating expenses 887,000 1,300,000 Net operating income $322,000 $505,000 Average inve
- Coolbrook Company has the following information available for the past year: River division Stream division Sales revenue $1,208,000 $1,819,000 Cost of goods sold and operating expenses 892,000 1,296,000 Net operating income $316,000 $523,000 Average inve
- Coolbrook company has the following information avaiable for past year. River division Sales Revenue $1,200,000 Cogs and operating expenses 897,000 Net operating income 303,000 Average invested assets $1,110,000 Stream division Sales revenue $1,806,000
- Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $1,219,000 $1,817,000 Cost of goods sold and operating expenses 889,000 1,287
- Coolbrook Company has the following information available for past year. River division Sales Revenue $1,200,000 Cogs and operating expenses 897,000 Net operating income 303,000 Average invested asse
- The following information was drawn from the annual reports of two companies. Company A Company B Sales revenue $1,000 $2,000 Cost of goods sold (600) (1,100) Gross margin 400 900 Operating expenses (220) (700) Operating income 180 200 Gain on sale of equ
- Coolbrook Company has the following information available for the past year: The company's hurdle rate is 6 percent. 1. Calculate the return on investment (ROI) and residual income for each division for last year. (Do not round your intermediate calcu
- The following is Cullumber Company's income statement for the past year. Sales revenue $730,000 Cost of goods sold 438,000 Gross margin 292,000 Operating expenses 120,000 Operating income $172,000 What is the markup percentage on the cost of goods sold?
- The following information was drawn from the annual reports of two companies. Company A Company B Sales revenue $1,000 $2,000 Cost of goods sold $(600) $(1100) Gross margin $400 $900 Operating expenses $(220) $(700) Operating income $180 $200 Gain on sale
- Use the following information from the current year financial statements of a company to calculate the ratios below: Income statement data: Sales (all on credit) $1,075,000 Cost of goods sold $575,000 Gross profit on sales $500,000 Operating expenses $30
- Moya's Corporation sells a single product for $25 per unit. Last year, the company's sales revenue was $265,000 and its net operating income was $43,500. If fixed expenses totaled $89,000 for the year, the break-even point in unit sales was: a. 10,600 uni
- Moya's Corporation sells a single product for $10 per unit. Last year, the company's sales revenue was $280,000 and its net operating income was $17,000. If fixed expenses totaled $95,000 for the year, the break-even point in unit sales was: a. 28,000 uni
- A company reported the following data for its first year of operations. What is the company's gross profit ratio? Net sales = $2,800 Cost of goods sold = $1,680 Operating expenses = $880 Ending inventories = $820
- Zowine Company's condensed income statement for the year ended December 31, 20-2, was as follows: Net sales $765,000 Cost of goods sold 550,000 Gross profit 215,000 Operating expenses 30,000 Income b
- Coolbrook Company has the following information available for the past year: The company's hurdle rate is 7.76 percent. Required: 1. Calculate return on investment (ROI) and residual income for each
- The following is Ivanhoe Company's income statement for the past year: Sales revenue $700,000 Cost of goods sold 420,000 Gross margin 280,000 Operating expenses 100,000 Operating income $180,000 a. W
- The following is Talley Company's income statement for the past year. Sales revenue $540,000 Cost of goods sold 324,000 Gross margin 216,000 Operating expenses 126,000 Operating income $90,000 1) What is the mark-up percentage on the cost of goods sold?
- The following data is available for J-Max Company: This Year Last Year Units sold 234,000 180,000 Sales revenue $1,170,000 $900,000 Cost of goods sold $819,000 $630,000 Gross profit $351,000 $270,000
- Esh Wares is a division of a major corporation. The following data are for the latest year of operations. -Sales 50,000,000 -Operating Income 3,200,000 -Average Operating Assets 10,000,000 The com
- A company reports the following amounts at the end of the year: Sales revenue $340,000 Cost of goods sold $220,000 Net income $59,000 Compute the company's gross profit ratio.
- The following is Talley Company's 2010 income statement. Sales revenue $571,300 Cost of goods sold 342,780 Gross margin 228,520 Operating expenses 102,300 Operating income $126,220 (a). What is the m
- The Frame It Company reporting the following items on its income statement in 2009: a. Net operating revenues: $814,250 b. Cost of goods sold: $305,908
- Vatsala Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2014: From the income statement: Sales Revenues, $265,000 Cost of Goods Sold, $210,000 Operating Expenses, $31,000 From the bala
- The following current year information is available from a manufacturing company: Sales 640,000 Gross Profit on sales 276,000 Operating Income 64,000 Income Before Taxes 44,000 Net Income 33,600 Account Receivable, Beginning Year 58,000 Account Receivabl
- During the year ended December 31, 2012, Bjornstad Corporation had the following results: Sales revenue $267,000; cost of good sold $107,000; net income $92,400; operating expenses $55,400; net cash provided by operating activities $108,950. What was the
- A company has a net sales of $100,000, cost of goods sold of $70,000, and operating expenses of $18,000. What is its gross profit for this company
- Deano Products is a division of a major corporation. The following data are for the last year of operations: Sales $19,080,000 Net operating income $591480 Average operating assets $6,000,000 Minimum required rate of return 12% The division's margin is c
- Gross profit for a merchandising company is net sales minus a. operating expenses. b. cost of goods sold. c. sales discounts. d. cost of goods available for sale.
- Eban Wares is a division of a major corporation. The following data are for the latest year of operations: Sales $10,000,000 Net operating income $950,000 Average operating assets $4,000,000 The compa
- A company has net sales of $755,700 and a cost of goods sold of $545,700. Its net income is $18,410. The company's gross margin and operating expenses, respectively, are: a. $228,880 and $527,290. b. $210,000 and $228,880. c. $736,820 and $191,590. d. $52
- A company has net sales of $770,300 and cost of goods sold of $556,300. Its net income is $21,910. The company's gross margin and operating expenses, respectively,
- A company has net sales and cost of goods sold of $825,000 and $547,000, respectively. Its net income is $98,500. The company's gross margin and operating expenses are _____ and _____, respectively.
- A company has net sales of $752,000 and a cost of goods sold of $543,000. Its net income is $17,530. The company's gross margin and operating expenses, respectively, are: A. $209,000 and $191,470 B. $191,470 and $209,000 C. $525,470 and $227,000 D. $227,0
- A company has $75,000 of inventory at the beginning of the year and $68,000 at the end of the year. Sales revenue is $1,135,500, cost of goods sold is $705,500, and net income is $140,700 for the year. The inventory turnover ratio is closest to: a. 5.5
- A company has $74,000 of inventory at the beginning of the year and $67,000 at the end of the year. Sales revenue is $1,103,500, cost of goods sold is $681,500, and net income is $137,700 for the year. The inventory turnover ratio is closest to: A. 9.7 B.
- Frattura Company reports net sales of $800,000, gross profit of $560,000, and net income of $230,000. What are its operating expenses?
- The income statement of the Guesser Company is shown below. Particulars Amount Amount Sales $755,000 Cost of goods sold $43,000 Gross profit $212,000 Operating expenses: Selling expenses $52,000 Administrative expenses $89,000 $141,000 Net income $71,00
- Christy Enterprises reports the year-end information from 2011 as follows: Sales (100,000 units) $500,000 Less: Cost of goods sold 300,000 Gross profit 200,000 Operating expenses (includes $20,000
- The information for Primrose Corporation is given below. Degree of operating leverage 3 Break-even revenue 220,000 Variable Expense 45% of Sales What is the actual net operating income? A. $ 60,500 B. $ 66,000 C. S 181,500 D. $ 198,000 E. None of th
- A company has net sales of $121,000, cost of goods sold of $69,000, and operating expenses of $44,000. The company's net income percentage is approximately: a) 0.066 b) 0.207 c) 0.091 d) 0.43
- The Reed Division reports the following operating data for the past two years: Year 1 Year 2 Margin 25% ? Turnover 2.5 2.0 Average operating assets ? $227,000 Net operating income $43,800 ? Stockholders equity $80,000 $125,000 Sales ? ? The return on inve
- Vatsala Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2014: \\ From the income statement: Sales Revenues, $265,000 Cost of Goods Sold, $210,000 Operating expenses, $31,000 \\ From th
- Division W of Comer Company has sales of $840,000, cost of goods sold of $500,000, operating expenses of $256,000, and invested assets of $600,000. What is the rate of return on investment for Division W? a. 14% b. 16.8% c. 10% d. 32.8%
- The income statement of Munsun Company is presented here. MUNSUN COMPANY Income Statement For the Year Ended November 30, 2017 Sales revenue $7,600,000 Cost of goods sold Beginning inventory $1,900,000 Purchases 4,400,000 Goods available for sale 6,300,
- Violet Sales Corp, reports the year-end information from 2018 as follows Sales (35,625 units) 285,000 Cost of goods sold 116 000 Gross margin $ 69,000 Operating expenses 154,000 Operating Income $
- Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales $36,880,000 Net operating income $3,008,960 Average operating assets $8,400,000 The company's minimum required rate of return 15%.
- The following data relate to bravo company for the year 2018: Sales 800,000 Cost of Goods Sold 480,000 Gross profit 320,000 Operating expenses: Selling 40,000 Administrative 80,000 Profit before income tax 200,000 Income tax expense 60,000 Profit 140,00
- Daab Products is a division of a major corporation. The following data are for the most recent year of operations: Sales $11,520,000 Net operating income $322,560 Average operating assets $3,000,000 The company's minimum required rate of return 10% The di
- Ratios Analyzing Firm Profitability The following information is available for Crest Company. Annual Data 2016 2015 Sales revenue $6,600,000 $6,000,000 Cost of goods sold 4,006,400 3,800,000 Net inco
- A company has net sales of $200,000, cost of goods sold of $120,000, selling expenses of $6,000, and non-operating expenses of $2,000. What is the company's gross profit?
- A company reports the following sales-related information. Sales, gross = $ 200,000 Sales returns and allowances = $16,000 Sales discounts = $4,000 Sales salaries expense = $10,000 Prepare the net sales portion of the company's multiple-step income statem
- Moyas Corporation sells a single product for $10 per unit. Last year, the company's sales revenue was $200,000 and its net operating income was $8,000. If fixed expenses totaled $72,000 for the year, the break-even point in unit sales was __________.
- Iba Industries is a division of a major corporation. The following data are for the latest year of operations: Sales $5,820,000 Net operating income $436,500 Average operating assets $2,000,000 T
- The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Macrosoft Corporation. Income Statement: Particulars Amount Amount Revenues and gains: Sales $290 Gain on sale of cash equivalents $
- Ashville Company Segmented Income Statements For the Current Fiscal Year Ended December 31, Bikes Division Trikes Division Sales $2,400,000 $1,000,000 Cost of goods sold $1,400,000 $530,000 Gross margin $1,000,000 $470,000 Allocated overhead (from
- Multiple Step Income Statement Curbstone Company Income Statement For the Year Ended August 31,2018 Sales $8,595,000 Cost of goods sold 6,110,000 Income from operations $2,485,000 Expenses: Selling ex
- The Hot Aire Company reported the following items on its income statement for 2007. a. Net operating revenues, $956,000. b. Cost of goods sold, $312,000. c. Selling and administrative expenses, $245,000. d. Research and development expenses, $122,000.
- Division W of Comer Company has sales of $140,000, cost of goods sold of $83,000, operating expenses of $43,000, and invested assets of $100,000. What is the rate of return on investment for Division W? a. 14% b. 2.8% c. 10% d. 5.47%
- The following information is available for our company for the current year: -operating income, $45,000 -average total assets, $400,000; -net sales, $900,000; and -required rate of return, 12%. C
- The information for Primrose Corporation is given below: Degree of operating leverage 2.5 Break-even revenue $ 300,000 Variable Expense 45% of Sales What is the actual net operating income? A. $275,000 B. $110,000 C. $165,000 D. $135,000 E. None of
- Operating data for Riverbed Corp are presented below. 2022 2021 Sales revenue $850,500 $643,000 Cost of goods sold 529,000 409,600 Selling expenses 121,800 75,900 Administrative expenses 73,300 50,700 Income tax expense 33,000 23,500 Net income 93,400 83,
- A company has net sales of $126,000, cost of goods sold of $72,000, operating expenses of $38,000, and other expenses of $3,000. What is the company's operating income?
- Information from Hope Company's records for the year ended December 3, 2015 is available as follows: Particulars Amount Net sales $2,800,000 Cost of goods manufactures: Variable $1,260,000 Fixed $630,000 Operating expenses: Variable $196,000 Fixed $240,0
- During the current year, merchandise is sold for $31,850,000. The cost of the merchandise sold is $24,206,000. a. What is the amount of the gross profit? b. Compute the gross profit percentage. c. When will the income statement necessarily report a net i
- Last year a company had stockholders' equity of $640,000, net operating income of $84,000, and sales of $400,000. The turnover was 0.50. Calculate ROI based on Net Operating Income.
- Presented here are the components in Cullumber Company's income statement. Determine the missing amounts. Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income Year 1 $71,000 $(b) $30,000 $(d) $10,810 Year 2 $108,100 $70,100 $(c) $(
- Dolly Company reported the following information for 201X. Sales revenue = $510,000 Cost of goods sold = $400,000 Operating expenses = $50,000 Unrealized holding gain on available-for-sale securities = $45,000 Cash dividends received on the securities = $
- The sales, income from operations, and invested assets for each division of Grosbeak Company are as follows: Sales ; Income from Operations ; Invested Assets ; Division E $5,000,000 $550,000 $2,400,00
- Waterway Co. reports the following information for 2017: sales revenue $776,200 cost of goods sold $517,000 operating expenses $90,200 an unrealized holding loss on available-for-sale securities for 2017 of $60,700. It declared and paid a cash dividend of
- Westchase Supplies reported sales of $5,000,000, cost of goods sold of $3,200,000, operating expenses of $1,400,000 and income tax expense of $160,000 for the year. What was the company's net income f
- C Company's current year income statement reports the following: Sales $825,000 Cost of Goods Sold $550,000 Gross Profit $275,000 C Company's comparative balance sheets show the following: End of Year Beginning of the Year Accounts receivable $71,000 $60
- During the current year, merchandise is sold for $2,450,000. The cost of the merchandise sold is $1,519,000. a. What is the amount of the gross profit? b. Compute the gross profit percentage (gross profit divided by sales). c. Will the income statement ne
- During the current year, merchandise is sold for $746,000. The cost of merchandise sold is $492,360. a. What is the amount of the gross profit? b. Compute the gross profit percentage (gross profit divided by sales). c. When will the income statement re
- Income Statement Data: This year Revenue $150,000 Cost of Goods Sold $90,000 Operating Income $10,000 Income Tax Expense $1,800 Last year Revenue $120,000 Cost of Goods Sold $60,000 Operating Income
- Esh Wares is a division of a major corporation. The following data are for the latest year of operations. Sales Net $50,000,000 Operating Income $3,200,00 Average Operating Assets $10,000,000 The company's minimum required rate of return 15%. a) What is t
- The income statement for a merchandising company shows each of these features except: A. gross profit. B. cost of goods sold. C. a sales revenue section. D. All of these are present.
- A company has net sales of $125,000, cost of goods sold of $50,000, operating expenses of $35,000, and selling expenses of $11,000. What is the gross profit? A. $75,000 B. $40,000 C. $29,000 D. $50,000
- Beak Industries is a division of a major corporation. Last year the division had total sales of $10,600,000, net operating income of $1,070,600, and average operating assets of $4,000,000. The division turnover is closest to: A. 2.09. B. 9.90. C. 2.65. D
- A company has net sales of $854,400 and cost of goods sold of $564,200. Its net income is $102,800. Calculate the company's gross margin and operating expenses.
- A company has sales revenue of $139,000, cost of goods sold of $64,000, operating expenses of $30,000, and other expenses of $5,000. The company's operating income is: A. $75,000. B. $45,000. C. $40,000. D. $70,000.
- During the current year, merchandise is sold for $795,000. The cost of the merchandise sold is $474,000. a. What is the amount of the gross profit? b. Compute the gross profit percentage. c. Will the income statement necessarily report a net income? Ex
- The Reed Division reports the following operating data for the past two years: Year 1 Year 2 Margin 20% ? Turnover 2.0 2.5 Average operating assets ? $210,000 Net operating income $44,000 ? Stockholders' equity $80,000 $125,000 Sales ? ? The return on inv
- Aide Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales $18,080,000 Net operating income $940,160 Average operating assets $4,810,000 The division's turnover is closest to: A. 19.23 B. 0.20 C. 5.1
- Presented below are the components in Gates Company's income statement. Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income a. $75,000 ? $30,000 ? $10,800 b. $108,000 $70,000 ? ? $29,500 c. ? $83,900 $79,600 $39,500 ? Determine the
- A company reported the following information for the month of July: Sales $50,475 Sales Discounts $1,235 Sales returns and allowances $2,840 Cost of goods sold $33,975 Calculate this company's gross profit.
- A company reports the following sales related information: Sales (gross) of $100,000; Sales discounts of $2,000; Sales returns and allowances of $8,000; Sales salaries expense of $5,000. Prepare the net sales portion only of this company s multiple-step i
- Eber Wares is a division of a major corporation. The following data are for the latest year of operations: Sales $30,000,000 Net operating income $1,170,000 Average operating assets $8,000,000 The company's minimum required rate of return 18% Required:
- Morning Company reports the following information for March. Calculate the gross profit and operating income for March using absorption costing. | Sales Revenue | $98,150 | Variable Cost of Goods Sold | 21,700 | Fixed Cost of Goods Sold | 14,200 | Varia
- Joyner Company's income statement for Year 2 follows: Amount ($) Sales 900,000 Cost of goods sold 500,000 Gross margin 400,000 Selling and administrative expenses 328,000 Net operating income 72,000 Non-operating items: Gain on sale of equipment 8,000 In
Explore our homework questions and answers library
Browse
by subject