Return on investment problem

Assignment Help Accounting Basics
Reference no: EM13133681

Peter, Inc. is the leading food distributor in the nation. The company is organized by geographical regions and each region is treated as an investment center for evaluation purposes. The following quarterly information is available:

North......East.....South.......West
Sales..................175,000..210,000...150,000....120,000
Net Income.. 83,305.. 97,366....37,405... 29,924
Total assets... 1,000,000.1,500,000. 800,000. 1,250,000
Current liabilities. 135,000. 600,000..433,000. 850,000

Required:

1. Determine which regional managers should receive bonuses if bonuses are awarded to regional managers whose return on investment (ROI) exceeds 10%. Be sure to show all your work. (This company defines invested capital as total assets)

2. Determine which regional managers should receive bonuses if bonuses are awarded to regional managers whose return on investment (ROI) exceeds 10%. Be sure to show all your work. (this company defines invested capital as total assets minus current liabilities)

3. Determine which regional managers should receive bonuses if bonuses are awarded to regional managers whose residual income exceeds 12%. Be sure to show all your work.

Reference no: EM13133681

Questions Cloud

What is happening to students scores over time : What do these different scores tell you about the tests in Weeks 1, 2, 3, and 4? What is happening to the students' scores over time?
How much will kathy blooms increase its van account : Kathy’s Blooms purchased a delivery van for $20,000. The company was given a $2,000 cash discount by the dealer, and paid $1,000 sales tax. Annual insurance on the van is $500. As a result of the purchase, by how much will Kathy’s Blooms increas..
Non-euclidean geometry on sphere : Suppose instead of working on the Euclidean plane we study geometry on a sphere in (Euclidean) three space. We interpret point to mean any point on the sphere and we interpret line to mean any great circle on the sphere (that is any circumference ..
Reaction to writing verses the videos was way off : My reaction to the writing verses the videos was way off. My rhetorical analysis of Finley was totally off. When I read the A guerilla gardener in South Central LA, I versioned Finley as an angry person who was tell his story of how he was discussed ..
Return on investment problem : Determine which regional managers should receive bonuses if bonuses are awarded to regional managers whose return on investment (ROI) exceeds 10%. Be sure to show all your work. (this company defines invested capital as total assets minus current ..
Which are paid by the employer : What payroll taxes are paid by the employee? Which are paid by the employer? What types of reports are used to document to the government the payroll taxes paid by the employer and employee?
What amount was transferred to finished goods : Actual production required an overhead cost of $420,000, $825,000 in materials used, and $330,000 in labor. All of the goods were completed. What amount was transferred to Finished Goods?
Explain propose a detailed mechanism for the acid : Propose a detailed mechanism for the acid - catalyzed Fisher esterification of propanoic acid
Explain experimental or nonexperimental study : Wwho are also athletes but who are not regularly hit in the head. Is this an example of an experimental or nonexperimental study?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Computing budgeted cost of work performed

Provide and show all answers and step by step work to obtain the answer, not skipping any steps. Show all equations, acronyms (ie ETC, ACWP, etc), and if applicable, a description of how you came to the answer.

  What is realized and recognized gain on the second asset

Jerry transfers two assets to a corporation as part of a Sec. 351 exchange. The first asset has an adjusted basis of $70,000 and a FMV of $50,000. The second asset has an adjusted basis of $70,000 and a FMV of $150,000. The FMV of the stock receiv..

  Description of total profit

The Loebuck grocery sells milk. The grocer orders milk from a local farmer fro $13 per case and sells for $16 per case. Unsold cases are disposed for $1.5 per case, and each case of shortage causes $3.7 loss of profit.

  Interest free loan from us government

Which item LEAST resembles an interest free loan from the U.S. government?

  Write a summary of a current event article

Write a summary of a current event article relating to cost behavior and/or cost-volume-profit analysis. Please cite your source. The article can be from television, newspaper, or a current magazine. Please give some thought to the assignment and ..

  Concepts of consolidated financial statements

Kordel Inc. holds 75% of the outstanding common stock of Raxston Corp. Raxston currently owes Kordel $500,000 for inventory acquired over the past few months. In preparing consolidated financial statements, what amount of this debt should be elimi..

  Denise gross estate

Denise's estate received the interest and dividends on the payment dates. What should be included in Denise's gross estate?

  Lifo method of accounting for inventory

During 2012, Crop-Paper-Scissors, a craft store, changed to the LIFO method of accounting for inventory. Suppose that during 2013 they switch back to the FIFO method and the following year switch back to LIFO again.

  Deducting as an ordinary loss

she contributed an additional $20000 to the corporation to help them. How much of her loss may she deduct as an ordinary loss?

  Prepare the journal entries for the restructuring

Provide your manager a comparison of the current reporting for debt,explaining the requirements for each type (bond, mortgage, capital lease, andothers). Then, prepare the journal entries for the restructuring.

  Prepare a partial income statement

The company mostly sells on a retail basis to household consumers, but occasionally receives large orders for tables and chairs from schools and businesses.

  What is the amount of the loss on impairment

What is the amount of the loss on impairment that Beehive should recognize at June 30, 2006?

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