Kaler Company has sales of $1 280.000, cost of geods sold or $755.000 other oper

Question

Kaler Company has sales of $1 280.000, cost of geods sold or $755.000 other operating expenses of $108,000 average invesied assets or $3.800.000, and a hurdle rate of 11 percem. Required: or s3.800 f 11 percen or s755 eter ine Kale ; eturn on inven ent ROl) investment turnover, pro t ma Turnover answers to & decimal places) n, and es dua ncome Do not round your intermediate ca cu ations Enter your Rol and Prot Margin answer o the nearest whole percentage 0.1234 should be entered as 12% Round your lnvestment i e Return on Investment Investment Tumover Proft Mangin Rasidual Incoma Lo o independenty) Enter hould be everal possible changes that Kale could tace n the upcomin a. Company sales and cost of goods sold increase by 5 pancent year folo Dete mine each scena os impact on Kale S ROI and esidual e e Note Treat each scenano independent y Enter your Rol percentage answers to 2 deci al places ie 0 1234 s entered as 12.34 Rat.m on Investmant Residual Income (Loss b axpanes expenss increase by $77,000 Retum on Imestmen Residual Income (Los5 e. Operating expenses decrease by 10 percent Raturn on Investmant Residual Income (Los5

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars 1) 2a ) 2b) 2c) 2d) 2e) 1) Sales      1,290,000.00      1,354,500.00      1,290,000.00      1,290,000.00      1,290,000.00      1,290,000.00 COGS       (755,000.00)       (792,750.00)       (755,000.00)       (755,000.00)       (755,000.00)       (755,000.00) Other operating expenses       (168,000.00)       (168,000.00)       (245,000.00)       (151,200.00)       (168,000.00)       (168,000.00) Net Income or Margin         367,000.00         393,750.00         290,000.00         383,800.00         367,000.00         367,000.00 Average Invested assets      3,800,000.00      3,800,000.00      3,800,000.00      3,800,000.00      3,475,000.00      3,800,000.00 ROI = Income/ Avg invested assets 9.66% 10.36% 7.63% 10.10% 10.56% 9.66% Investment turnover = Sales/ Avg Invested assets                      0.34                      0.36                      0.34                      0.34                      0.37                      0.34 Profit Margin = Income/Sales 28.45% 29.07% 22.48% 29.75% 28.45% 28.45% Required income = Avg Invested Assets *11%         418,000.00         418,000.00         418,000.00         418,000.00         382,250.00         304,000.00 Residual Income (Loss) = Income - Reqd Income         (51,000.00)         (24,250.00)       (128,000.00)         (34,200.00)         (15,250.00)            63,000.00

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