User Account

All Pages

What would be the company roi

Assignment Help Financial Accounting
Reference no: EM13506188

Omaha Company provides the following information:

Sales

$4,000,000

Net operating income

400,000

Average operating assets

1,600,000

Consider each question independently. Carry out all computations to two decimal places.

Required:

a) Compute the company's return on investment.

b) The owner is convinced that sales will increase next year by 150% and that net operating income will increase by 100%, with no increase in average operating assets. What would be the company's ROI?

c) The chief financial officer of the company believes a more realistic scenario would be a $1,000,000 increase in sales, requiring a $400,000 increase in average operating assets, with a resulting $250,000 increase in net operating income. What would be the company's ROI in this situation?

 

Reference no: EM13506188

Questions Cloud

How long was the rope supporting the chandelier : In 1581, when Galileo was 17 years old, he noticed one morning at the Cathedral in Pisa (just next door to the leaning tower) that after the chandeliers were lit several of them oscillated back and forth with different amplitudes, How long was the..
Suppliers competition from stealing business : A rule in a contract, generally one with a commodity supplier, is the take-or-pay provision. It is usually used with commodity suppliers that have high fixed costs. As an example, you agree to buy 100 units from a supplier at $80 per unit.
What was the amount of residual income for each department : Snickers Company has two investment centers and has developed the following information. Snickers Company expects a minimum return on operating assets of 10%.
How much thermal power is radiated by a light bulb : How much thermal power is radiated by a light bulb when its filament is heated to 2000°C? Assume that the filament is a blackbody of area 1.0 cm2
What would be the company roi : The owner is convinced that sales will increase next year by 150% and that net operating income will increase by 100%, with no increase in average operating assets. What would be the company's ROI?
Calculate the impulse experienced by the target : A 0.050-kg bullet is shot to the right toward a 1.5-kg target initially at rest on a flat frictionless surface. calculate the impulse experienced by the target
Prepare direct materials budget for the chips : Prepare direct materials budget for the chips, by quarter and in total, for Year 2 including the dollar amount of purchases for each quarter and for the year in total.
What is the effective annual rate of interest on additional : A house is for sale for $250,000. You have a choice of two 20-year mortgage loans with  monthly payments: (1) if you make a down payment of $25,000, you can obtain a loan with a 6% rate of interest
What is the frequency of the sirens on the police cars : You are standing on a sidewalk when a police car passes you traveling 25 m/s and sounding its siren. what is the frequency of the sirens on the police cars

Reviews

Write a Review

Financial Accounting Questions & Answers

  Questionace company produces a product that sells for 142

questionace company produces a product that sells for 142 per unit. ace in june and july the first 2 months of

  Determine the cost of the finished goods inventory

What is the likely effect on the $4.50 unit cost of direct materials if next year's production increases? Why?

  Presented below are selected transactions at thomas company

presented below are selected transactions at thomas company for 2006. jan1st - retired a piece of machinery that was

  Elucidate the circumstances that would result in each

A disbursement by the general fund to another fund may be recorded as a receivable, an expenditure, or a fund transfer. Elucidate the circumstances that would result in each of these different treatments.

  Analyze overall process of accounting for insolvencies

Analyze overall process of accounting for insolvencies and make at least one recommendation for improving current practices. Provide specific examples of how your recommendation would be an improvement.

  Pay roll account kept under zero balance system calculate

pay roll account kept under zero balance system . calculate pre taxslimware is considering establishing a zero-balance

  Bad debt expenses debited in the income statement based on

bad debt expenses debited in the income statement based on the details.bad debts analysis allowance account nbspon

  Journalizing adjusting entriesjournalize the adjusting

journalizing adjusting entriesjournalize the adjusting entry needed at december 31 for each of the following

  Illustrate what are some of the more significant non-tax

Illustrate what are some of the more significant non-tax consequences of choosing the partnership form? Brief answer. 3-6 sentences minimum.

  What was tulsa net income for the year

Corresponds to CLO 2(c) Given the following adjusted trial balance amounts, what is the retained earnings ending balance to be reported on the statement of retained earnings?

  Journalize september transactions for reid supply

Journalize the September transactions for Reid Supply and prepare in journal form the adjusting entries for the seven items listed fro Ben Cartwright Pest Control.

  Compute the appropriate discount rate

Compute the appropriate discount rate to use when evaluating DEI's project and the manufacturing plant has an eight-year tax life. At end of the project (i.e. the end of Year 5), the plant can be scrapped for $2 million. Find the after-tax salvage ..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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