131.The following information is reported for the current year for North Atlantic Division of XT Enterprises:
Sales$3,800,000
Interest expense$250,000
Net income$500,000
Total assets$5,000,000
Noninterest-bearing current liabilities$400,000
Cost of capital8%
Required rate of return14%
Tax rate30%
As it relates to investment center evaluation, how much is the division’s profit margin, rounded to the nearestwhole percentage?
A.18%
B.13%
C.10%
D.11%
132.The following information is reported for the current year for North Atlantic Division of XT Enterprises:
Sales$3,800,000
Interest expense$250,000
Net income$500,000
Total assets$5,000,000
Noninterest-bearing current liabilities$400,000
Cost of capital8%
Required rate of return14%
Tax rate30%
How muchis the division’s invested capital?
A.$5,000,000
B.$5,400,000
C.$5,500,000
D.$4,600,000
133.The following information is reported for the current year for North Atlantic Division of XT Enterprises:
Sales$3,800,000
Interest expense$250,000
Net income$500,000
Total assets$5,000,000
Noninterest-bearing current liabilities$400,000
Cost of capital8%
Required rate of return14%
Tax rate30%
As it relates to investment center evaluation, how much is the division’s investment turnover?
A.0.76
B.0.71
C.0.83
D.0.15
134.The following information is reported for the current year for North Atlantic Division of XT Enterprises:
Sales$3,800,000
Interest expense$250,000
Net income$500,000
Total assets$5,000,000
Noninterest-bearing current liabilities$400,000
Cost of capital8%
Required rate of return14%
Tax rate30%
How muchis the division’s residual income?
A.$31,000
B.$275,000
C.$644,000
D.$307,000
135.The following information is reported for the current year for North Atlantic Division of XT Enterprises:
Sales$3,800,000
Interest expense$250,000
Net income$500,000
Total assets$5,000,000
Noninterest-bearing current liabilities$400,000
Cost of capital8%
Required rate of return14%
Tax rate30%
How muchis the division’s return on investment rounded to one decimal?
A.16.3%
B.7.1%
C.14.7%
D.12.5%
136.WintonCompany has three divisions. The Florida Division has a 30 percent tax rate, a 4.5 percent cost of capital, and a 7.5 percent required rate of return. During the fiscal year, the divisionreportedsales of $3,920,000. Interest expense was $120,000 and net income was $122,800. The Florida Divisionhas total assets of $2,950,000 and noninterest-bearing liabilities of $150,000. How muchis the Florida Division’s NOPAT?
A.$242,800
B.$158,800
C.$206,800
D.None of these answer choices are correct.
137.WintonCompany has three divisions. The Florida Division has a 30 percent tax rate, a4.5 percent cost of capital, and a 7.5 percent required rate of return. During the fiscal year, the divisionreported sales of $3,920,000. Interest expense was $120,000 and net income was $122,800. The Florida Division has total assets of $2,950,000 and noninterest-bearing liabilities of $150,000. How much is the Florida Division’s invested capital?
A.$2,800,000
B.$3,100,000
C.$2,950,000
D.None of these answer choices are correct.
138.WintonCompany has three divisions. The Florida Division has a 30 percent tax rate, a4.5 percent cost of capital, and a 7.5 percent required rate of return. During the fiscal year, the divisionreported sales of $3,920,000. Interest expense was $120,000 and net income was $122,800. The Florida Division has total assets of $2,950,000 and noninterest-bearing liabilities of $150,000. How much is the Florida Division’s residual income?
A.$80,800
B.($3,200)
C.$32,800
D.None of these answer choices are correct.
139.Last year, Green Thumb’s Residential Division reported sales of $950,000, interest expense of $100,000, and net income of $126,000. The company’s tax rate is 30 percent, and it has an 8 percent cost of capital and a 9 percent required rate of return. Residential Division has noninterest-bearing current liabilities that total $75,000 and it has total assets of $820,000. How much is the Residential Division’s NOPAT?
A.$156,000
B.$56,000
C.$196,000
D.$96,000
140.Last year, Green Thumb’s Residential Division reported sales of $950,000, interest expense of $100,000, and net income of $126,000. The company’s tax rate is 30 percent, and it has an 8 percent cost of capital and a 9 percent required rate of return. Residential Division has noninterest-bearing current liabilities that total $75,000 and it has total assets of $820,000. How much is the Residential Division’sinvested capital?
A.$820,000
B.$875,000
C.$895,000
D.$745,000
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