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This document provides financial data for calculations including net operating income, sales, average operating assets, turnover, residual income, minimum required return, and shareholders' equity. It includes the net operating income, sales, operating expenses, interest income, taxes expense, and average operating assets for the Hola Division of Ho Company last year to calculate the residual income and return on investment.

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Magsaysay South
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208 views1 page

12

This document provides financial data for calculations including net operating income, sales, average operating assets, turnover, residual income, minimum required return, and shareholders' equity. It includes the net operating income, sales, operating expenses, interest income, taxes expense, and average operating assets for the Hola Division of Ho Company last year to calculate the residual income and return on investment.

Uploaded by

Magsaysay South
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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84.

Net operating income 25,000


Ave. Operating assets 100,000
= 25%
85. Net operating income 25,000
Sales 200,000
= 12.5%

86. Sales 200,000


Ave. operating assets = 100,000
Turnover = 2x

87. Net operating income 25,000


Residual income 13,000
Minimum required return 12,000
/average operating assets /100,000
Minimum rate of return 12%

The following information is for questions 7 and 8:

The Hola Division of the Ho Company reported the following data for last year:

Sales P800,000 Shareholders’ equity P200,000


Operating expenses 650,000 Average operating assets 600,000
Interest income 50,000 Minimum required rate
Taxes expense 30,000 of return 12%

88. The residual income for the Hola Division last year was
a. P126,000 c. P78,000
b. P 46,000 d. P22,000
89.The return on investment last year for the Hola Division was
a. 75% c. 35%
b. 25% d. 12%

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