Investment roi and residual income ri

Assignment Help Accounting Basics
Reference no: EM13912332

                                Manila Div.          Bangkok Div.

Net profit ($)      70,000                 140,000

Net assets ($)     300,000    650,000

The company has a current cost of capital of 15%.

Required:

a) Calculate the return on investment (ROI) and residual income (RI) for the two divisions and comment on your results.

b)Which method (return on investment or residual income) would be more useful in comparing the two divisions' performance? Why?

c) List three (3) aspects of performance measures that would be appropriate for an auditing firm.

Reference no: EM13912332

Questions Cloud

01-jan-2007 was monday. what day of the week lies on 01-jan- : 01-Jan-2007 was Monday. What day of the week lies on 01-Jan-2008? A. Wednesday B. Sunday C. Friday D. Tuesday
Reactions of benzaldehyde lead : Describe why SEAr reactions of toluene lead to ortho and para products while SEAr reactions of benzaldehyde lead to only meta products. Use convincing mechanistic arguments and show all important structures or resonance forms to support your expla..
How much did they pay for 24 ballons : Ellen,jim, and steve bought three helium ballons and paid $2 for all three. They decided to go back to the store and buy enough ballons for everyone in the class. How much did they pay for 24 ballons
Calculate the write-down on an individual basis : What is the amount of write-down (if any) required using IFRS? Calculate the write-down on an individual basis. Provide necessary journal entries for the write-down.
Investment roi and residual income ri : Calculate the return on investment (ROI) and residual income (RI) for the two divisions and comment on your results.Which method (return on investment or residual income) would be more useful in comparing the two divisions' performance? Why?List thre..
Iesds is eliminated strategy : Roommates: Two roommates each need to choose to clean their apartment, and each can choose an amount of time ti ≥ 0 to clean. If their choices are ti and tj , then player i’s payoff is given by (10 − tj )ti − ti ^2 i and j are subscripts.IESDS is ite..
Reaction of an acetylide anion : Clearly illustrate, using curved arrows, each step of mechanism of the following: i. reaction of an acetylide anion with bromomethane.
Find in the selected financial data : This problem is based on the 2011 annual report of Campbell Soup Company in the appendix. Find in the Selected Financial Data (also known as the Five Year Review), or calculate, the following data:
Initial volume in ml : A closed gas system initially has pressure and temperature of 641 mm Hg and 638.0 oC with the volume unknown. If the same closed system has values of 859 mm Hg, 3.20 L and 580 K, what was the initial volume in mL?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Describe the responsibility of each of the following with

evaluate the following statement made by an auditor in comparison with other accounts cash and marketable securities

  Definitions of a discount bond and premium bond

1. What does a call provision [call feature] allow [bond] issuers to do, and why would they do it"? 2. "Provide the definitions of a discount bond and premium bond. Give examples?

  Problem on appropriate adjusting entry

At the beginning of November Manny Co. had $600 worth of supplies on hand. During the month of November Manny Co. purchased $2,100 worth of supplies. On November 30, Manny Co. counted supplies and found that $1,600 remained on hand. What is the ap..

  Comparative balance sheets indicate no notes

If comparative balance sheets indicate no notes receivable on the first, or base, date and a $50,000 note receivable on the laterdate, the increase of $50,000:

  Acme birds inc produces bird seeds all direct materials

acme birds inc. produces bird seeds. all direct materials used in the production process are added at the beginning of

  Sold at the split-off point basics

Thorpe's president has asked your consulting firm to make a recommendation as to whether the banolide should be sold at the split-off point or processed further. Explain your answer.

  Tax consequences to bluejay

What are the tax consequences to Bluejay and to Redbird as a result of Bluejay's liquidation?

  Amount of depreciation expense for first year

On January 1, Top Flight Company purchased a $68,000 machine. The estimated life of the machine was five years, and the estimated salvage value was $5,000. Compute the amount of depreciation expense for the first year, using each of the following m..

  Assume you are opening a bed bath and beyond store to

assume you are opening a bed bath and beyond store. to finance the business you need a 500000 loan and your banker

  Cost and an allowance account

Prepare journal entries required at December 31, 2010, and December 31, 2011, assuming that the inventory is recorded at cost and an allowance account is adjusted at each year-end under a perpetual system.

  Board of directors declared a 10 stock dividend with a

the capital corporation had stockholders equity on january 1 2000 as followscommon stock 5 par value 1000000 shares

  Determine taxable income in each of the following instances

determine taxable income in each of the following instances. assume that the corporation is a c corporation and that

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd