Business, 30.11.2019 07:31 RegencySlayer5304

Solano company has sales of $580,000, cost of goods sold of $410,000, other operating expenses of $54,000, average invested assets of $1,800,000, and a hurdle rate of 9 percent.
required:
1. determine solano’s return on investment (roi), investment turnover, profit margin, and residual income.
2. several possible changes that solano could face in the upcoming year follow. determine each scenario’s impact on solano’s roi and residual income. (note: treat each scenario independently.)
a. company sales and cost of goods sold increase by 30 percent.
b. operating expenses decrease by $13,500.
c. operating expenses increase by 10 percent.
d. average invested assets increase by $340,000.
e. solano changes its hurdle rate to 15 percent.

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Answer from: leahmitch612

ROI=6.44%

Investment Turnover=0.32

Profit Margin=20%

Residual Income (RI) = -$46,000

a) ROI =9.28%, RI= $5,000

b) ROI=7.19%, RI= -$32,500

c) ROI=6.15%, RI= -$51,400

d) ROI=5.4%, RI= -$76,600

e) ROI=6.44%, RI= -$154,000

Explanation:

1. ROI is calculated as (Operating profit/Average net asset/Investment)*100.

Investment turnover is calculated as Net sales/Average net asset/Investment.

Profit Margin is calculated as Operating profit/Total sales.

Residual Income is calculated as Operating profit-(Average net asset/Investment * Hurdle rate).

Note: Operating profit= Sales-(Cost of goods sold+Operating expenses)

a) 30% increase in sales & cost of goods sold will increase the ROI & Residual income.

b) Decrease in operating expense will increase the operating income, thereby increasing the ROI & RI.

c) Increase in operating expense by 10% will reduce the operating income, thereby decreasing the ROI & RI.

d) Increase in average invested assets by $340,000 will reduce the ROI & RI.

e) Change in hurdle rate will not change the ROI; however, it will decrease the residual income (RI).

Answer from: Quest

among other factors, composers started writing dynamic markings in their scores because "new instruments allowed for more dynamic ranges and contrast."

dynamics allude to the loudness or softness of music. dynamics offer an approach to demonstrate articulation in sheet music. they to drive the enthusiastic substance of music through volume and force. maybe you could alter both the volume and the shading profundity on your screen at the same time. we can likewise think about the force side of elements as the quality of a note. a few notes are intended to be played delicately and gently, while others are intended to be played all the more firmly.

some dynamics markings have a letter 'm,' which remains for mezzo, signifying 'medium.' so a mezzo piano unique stamping resembles this (mp) and intends to play medium calm, while a mezzo specialty dynamic resembles this (mf) and intends to play medium loud.

Answer from: Quest

the correct answer is: [c]: " cyclical unemployment " .

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