99.
The following data pertain to operations at Quick Incorporated:
Throughput time
4 hours
Delivery cycle time
8 hours
Process time
1 hour
Queue time
2 hours
The manufacturing cycle efficiency (MCE) for this operation would be:
100.
Jolin Corporation keeps careful track of the time required to fill orders. The times recorded
for a particular order appear below:
Hours
Move time
2.0
Wait time
26.1
Queue time
9.0
Process time
1.2
Inspection time
0.2
The delivery cycle time was:
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101.
Jolin Corporation keeps careful track of the time required to fill orders. The times recorded
for a particular order appear below:
Hours
Move time
2.0
Wait time
26.1
Queue time
9.0
Process time
1.2
Inspection time
0.2
The throughput time was:
102.
Jolin Corporation keeps careful track of the time required to fill orders. The times recorded
for a particular order appear below:
Hours
Move time
2.0
Wait time
26.1
Queue time
9.0
Process time
1.2
Inspection time
0.2
The manufacturing cycle efficiency (MCE) was closest to:
103.
Handle Fabrication is a division of a major corporation. Last year the division had total
sales of $36,160,000, net operating income of $2,892,800, and average operating assets of
$8,000,000. The company’s minimum required rate of return is 12%.
Required:
What is the division’s return on investment (ROI)?
104.
Gaal Industries is a division of a major corporation. Last year the division had total sales of
$26,110,000, net operating income of $1,801,590, and average operating assets of
$7,000,000. The company’s minimum required rate of return is 18%.
Required:
a. What is the division’s margin?
b. What is the division’s turnover?
c. What is the division’s return on investment (ROI)?
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105.
Financial data for Redstone Company for last year appear below:
Redstone Company
Statements of Financial Position
Beginning
Balance
Ending
Balance
Assets:
Cash
$120,000
$160,000
Accounts
receivable
110,000
100,000
Inventory
50,000
60,000
Plant and
equipment (net)
180,000
160,000
Investment in
Balsam
Company
50,000
60,000
Land
(undeveloped)
120,000
120,000
Total assets
$630,000
$660,000
Liabilities and
owners’ equity:
Accounts
payable
$70,000
$90,000
Long-term debt
500,000
500,000
Owners’ equity
60,000
70,000
Total liabilities
and owners’
equity
$630,000
$660,000
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Redstone Company
Income Statement
Sales
$1,222,000
Less operating
expenses
1,099,800
Net operating
income
122,200
Less interest and
taxes:
Interest expense
$60,000
Tax expense
20,000
80,000
Net income
$42,200
The company paid dividends of $32,200 last year. The “Investment in Balsam Company”
on the statement of financial position represents an investment in the stock of another
company.
Required:
a. Compute the company‘s margin, turnover, and return on investment for last year.
b. The Board of Directors of Redstone has set a minimum required return of 25%. What
was the company’s residual income last year?
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106.
Guerlane Fragrance Corporation has a perfume division, Essense, and a cologne division,
Karisma. The following information relates to last year’s operations at each division. The
minimum required rate of return is the same for both divisions.
Essense
Karisma
Sales
$360,000
(d)
Average operating
assets
$120,000
(e)
Net operating
income
(a)
$10,000
Margin
(b)
5%
Turnover
(c)
2.5
Return on
investment (ROI)
20%
(f)
Residual income
$6,000
(g)
Required:
Compute the unknown quantities above [(a) through (g)]. SHOW YOUR
COMPUTATIONS.
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