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Marysya12 [62]
3 years ago
10

H&R Block Inc. provides tax preparation services throughout the United States and other parts of the world. These services a

re provided through two segments: company-owned offices and franchised operations. Recent financial information provided by H&R Block for its company-owned and franchised operations is as follows (in millions): Company-Owned Franchised Operations Revenues $2,651 $ 335 Income from operations 617 86 Total assets 3,930 586 a. Use the DuPont formula to determine the return on investment for each business divisions. Round whole percents to one decimal place and investment turnover to two decimal places. Division Return on Investment Company-Owned % Franchised Operations % b. Determine the residual income for each division, assuming a minimum acceptable income of 15% of total assets. Round minimal acceptable return to the nearest million dollars. Division Residual income Company-Owned $ millions Franchised Operations $ millions c. The Franchised Operations (FO) segment has the return on investment, which is mainly the result of a investment turnover.
Business
1 answer:
IrinaK [193]3 years ago
4 0

Answer:

Explanation:

A) Calculating ROI

For company owned;

Profit margin = 617/2651 = 23.3%

Asset turnover = 2651/3930 = 0.67

Return on investment (ROI) = 23.3*.67 = 15.6%

For Franchised operations;

Profit margin = 86/335 = 25.7%

Asset turnover = 335/586 = 0.57

Return on investment (ROI) = 25.7*.57 = 14.6%

B) Calculating Residual income

For company owned;

Operating income = 617

Minimum operating income = 3930*15% = 590

Residual income = 617-590 = 27

For For Franchised operations;

Operating income =86

Minimum operating income =586*15% = 88

Residual income = 86-88 = -2

C) The Franchised Operations (FO) section has the lowest return on investment, which is principally the result of the Lowest investment turnover.

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The items that affect incentives for people to produce and exchange goods and services are:

liability rules
property rights
contract enforcement

<span>These factors will hinder the exchange of goods and services to people.</span>
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Beyond the IMS, identify and briefly describe the (exogenous) environmental factors that organizations should consider when perf
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Answer:

1. Environmental factors that organizations should consider are :Political, Economic, Social, Technological, Legal and Environmental factors. Example are interest rates, innovations and laws

2. Internal factors that organizations should take into account in preparing to do a SWOT analysis are strengths (S) and weaknesses (W).Examples are innovation culture, expertise and resources as well as value systems

3. Environmental factors are influencing Ford Motor Company and the rest of the automobile industry are laws (legal-environmental) , interest rates (economic), customers needs depending on geography (social)

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The Integrated Management System (IMS) is an internal tool that the Company uses to all of its organization systems and processes into one complete framework which enables the organization to work as a single unit. It however does not tell anything about the environment in which a company operates in.

When performing an external environmental analysis, organizations should consider the PESTLE analysis which tell much about the external environment. PESTLE analysis looks into Political, Economic, Social, Technological, Legal and Environmental factors that are likely to impact an organization strategy.

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Ford Motor Company and the rest of the automobile industry are mainly influenced by the Legal and Environmental Factors through laws set by countries to reduce carbon emissions in the fight against global warming. Other factors include the ability to innovate (Technological) and meeting the changing customer needs (Social). The profit part is always important as well in these inflationary times so they also need to set prices well (Economic).

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Simone lives in a country in which the government does not impose quotas on what can be imported or on what businesses can produ
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The type of situation that describe a situation where government does not impose quotas on what can be imported is known as free trade.

<h3>What is free trade?</h3>

Free trade is an agreement between two or more countries to remove trade barriers or restrictions . This enable member countries trade freely without any impediment to import and export of goods.

Countries come together to promote their goods and services by taking away any thing that could hinder import and export of goods among member nation. This bring about increased efficiencies.

Hence, the type of situation that describe a situation where government does not impose quotas on what can be imported is known as free trade.

Learn more about free trade here: brainly.com/question/3520350

7 0
2 years ago
Coronado's Place recorded the following data:
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Answer:

The weighted average unit cost of the inventory at January 31 is $496

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Weighted Average unit cost the average cost of units on hand on each day. It is calculated by dividing total inventory value by total available units.

Date                    Unit Received / Sold  On Hand Unit     Cost   Balance

1/1       Inventory     540 units at $2.80          540             $1,512    $1,512

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Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of $103,700, and withdrew $18,000 from
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Answer:

Explanation:

The closing entry of the income summary account is shown below:

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    To Retained Earning A/c             $81,300

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The retained earning balance is calculated by taking a difference between:

= Annual revenues - Expenditure

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The income summary should always be closed after closing of revenue and expenditure account.

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