value: 1.25 points Meiji Isetan Corp. of Japan has two regional divisions with h
ID: 2432039 • Letter: V
Question
value: 1.25 points Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Sales Net operating income Average operating assets Yokohama $ 9,100,000 $21,000,000 S 455,000 $ 1,470,000 $ 2,275,000 $10,500,000 Required 1. For each division, compute the return on investment (RO) in terms of margin and turnover. (Do not round intermediate calculations. Enter your answers as a percent (i.e., 0.12 should be entered as 12).) Osaka Yokohama ROI 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 12%. Compute the residual income for each division. Osaka Yokohama Average operating assets Net operating income Minimum required return on average assets Residual income 0Explanation / Answer
As per chegg guidelines we answer one question per post. But I have answered multiple questions. Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Osaka Yokohama Q3 Sales 9,100,000.00 21,000,000.00 Net operating Income 455,000.00 1,470,000.00 Average Operating Assets 2,275,000.00 10,500,000.00 Turnover = Sales/Avg operating Assts 4.00 2.00 Return on Income = NOI/Sales 5.00% 7.00% Return on Investment = Turnover *ROI 20.00% 14.00% 2) Average Operating Assets 2,275,000.00 10,500,000.00 Net operating Income 455,000.00 1,470,000.00 Minimum Required return = 12%*Avg operating assets 273,000.00 1,260,000.00 residual Income = NOI - Minimum required return 182,000.00 210,000.00 Q4 Particulars Amount Sales 21,600,000.00 Net operating Income 1,749,600.00 Average Operating Assets 4,800,000.00 Margin = 1749,600/21,600,000 8.10% Turnover = 21,600,000/4,800,000 4.50 ROI = 4.5*8.10% 36.45% Q5 Sales = 21.6m + 21.6m*1.2 47,520,000.00 Net operating Income = 1749,600 + 1749,600*3.4 7,698,240.00 Average Operating Assets 4,800,000.00 Margin = NOI/Sales 16.20% Turnover = Sales/ Avg operating assets 9.90 ROI = 16.20%*9.90 160.38% Q6 Sales = 21.6m + 5m 26,600,000.00 Net operating Income = 1749600 + 1043400 2,793,000.00 Average Operating Assets = 4.8m + 1.85m 6,650,000.00 Margin = NOI/Sales 10.50% Turnover = Sales/ Avg operating assets 4.00 ROI = 10.50%*4 42.00%
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