Accounting records from Division A, Alpha Manufacturing Company indicate the following:
Required:
1. Compute the return on sales (ROS) for Division A.
2. Compute the asset turnover (AT) for Division A.
3. Compute return on investment (ROI) for this division, using answers to parts (1) and (2).
4. Compute residual income (RI) for Division A.
5. Describe how Alpha Manufacturing would determine whether or not to invest in any particular project in the future.

Question

Accounting records from Division A, Alpha Manufacturing Company indicate the following:
  Required:
1. Compute the return on sales (ROS) for Division A.
2. Compute the asset turnover (AT) for Division A.
3. Compute return on investment (ROI) for this division, using answers to parts (1) and (2).
4. Compute residual income (RI) for Division A.
5. Describe how Alpha Manufacturing would determine whether or not to invest in any particular project in the future.

Quizplus · Accepted Answer

The Answer of Accounting records from Division A, Alpha Manufacturing Company indicate the following:
  Required:
1. Compute the return on sales (ROS) for Division A.
2. Compute the asset turnover (AT) for Division A.
3. Compute return on investment (ROI) for this division, using answers to parts (1) and (2).
4. Compute residual income (RI) for Division A.
5. Describe how Alpha Manufacturing would determine whether or not to invest in any particular project in the future.

Accounting Records from Division A, Alpha Manufacturing Company Indicate the Following