Exam 21: Key Performance Indicators, Compensation, and Multinational Considerations

Answer the following questions using the information below: The top management at Munchie Company, a manufacturer of computer games, is attempting to recover from a flood that destroyed some of their accounting records. The main computer system was also severely damaged. The following information was salvaged: -What were the sales for the Beta Division?

Answer the following questions using the information below: Yasir Company has two sources of funds: long-term debt with a market and book value of $5 million issued at an interest rate of 12%, and equity capital that has a market value of $4 million (book value of $2 million). Yasir Company has profit centers in the following locations with the following operating incomes, total assets, and current liabilities. The cost of equity capital is 12%, while the tax rate is 25%. -What is the EVA for Riyadh?

Answer the following questions using the information below: The Bandage Medical Supply Company has two divisions that operate independently of one another. The financial data for the year 2014 reported the following results: The company's desired rate of return is 10%. Income is defined as operating income. -What are the respective return-on-investment ratios for the North and South Divisions?

Answer the following questions using the information below: Yasir Company has two sources of funds: long-term debt with a market and book value of $5 million issued at an interest rate of 12%, and equity capital that has a market value of $4 million (book value of $2 million). Yasir Company has profit centers in the following locations with the following operating incomes, total assets, and current liabilities. The cost of equity capital is 12%, while the tax rate is 25%. -What is the EVA for Jeddah?

Samir Company has two regional offices. The data for each are as follows: What is the Abu Dhabi Division's return on investment?

Thamina Company has two regional offices. The data for each are as follows: What is the return on investment for the Sharjah Division?

Answer the following questions using the information below: Carriage Incorporated manufactures horse carriages. The company has two divisions, Wheels and Assembly. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 2014: -What are Wheels's and Assembly's residual incomes based on book values, respectively?