Given the Following Information for the Northern Division $$\begin{array} { l l } \text { Asset base } & \$ 500,000 \\\text { Sales revenues } & \$ 725,000 \\\text { Expenses } & \$ 662,500\end{array}$$

question 75

Essay

Given the following information for the Northern Division:
$$\begin{array} { l l } \text { Asset base } & \$ 500,000 \\\text { Sales revenues } & \$ 725,000 \\\text { Expenses } & \$ 662,500\end{array}$$
Required:
A. What is the margin, turnover, and ROI for the Northern Division?
B. The Northern Division has an option to make an additional investment that would add $100,000 to the asset base. It would generate an additional $50,000 in sales revenue and no additional expenses. What would be the effect on margin, turnover, and ROI?
C. Another alternative (independent of alternative B) for the Northern Division is to run an advertising campaign that would require additional advertising expenses of $37,500, but the best estimate is the campaign would generate an additional $75,000 of revenue. What would be the effect on margin, turnover, and ROI?

Evaluate the financial effects of factoring receivables on a company's balance sheet and income statement.

Compute the cash received from discounting notes receivable and record the transactions properly.

Assess the impact of debt restructuring on the financial statements and calculate related ratios.

Analyze the impact of changes in interest rates on the carrying value and fair value of notes receivable.

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Definitions:

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Set Point

A theory suggesting that an individual's weight or certain physiological markers naturally tend to stabilize around a specific value or range.

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The unfair or biased treatment of people from various groups, particularly based on their race, age, or gender.

Overweight Applicants

Candidates for a position who are perceived or actually weigh more than what is considered healthy for their height, potentially facing bias.