4,500,000 795,000 2,400,000 Division C Division D 6,800,000 795,000 2,700,000 Required: (a) Using the DuPont formula, determine the following for each division: • Division B o Profit margin (rounded to two decimal places): Investment turmover (rounded to four decimal places): o Rate of return on investment (rounded to one decimal place): • Division C o Profit margin (rounded to two decimal places): o Investment turnover (rounded to four decimal places): o Rate of return on investment (rounded to one decimal place): • Division D o Profit margin (rounded to two decimal places):

4,500,000 795,000 2,400,000 Division C Division D 6,800,000 795,000 2,700,000 Required: (a) Using the DuPont formula, determine the following for each division: • Division B o Profit margin (rounded to two decimal places): Investment turmover (rounded to four decimal places): o Rate of return on investment (rounded to one decimal place): • Division C o Profit margin (rounded to two decimal places): o Investment turnover (rounded to four decimal places): o Rate of return on investment (rounded to one decimal place): • Division D o Profit margin (rounded to two decimal places):

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

. The sales, income from operations, and invested assets for each division of Grosbeak Company are as follows: Sales Income from Operations Invested Assets Division E $5,000,000 $550,000 $2,400,000 Division F 4,800,000 860,000 2,500,000 Division G 7,000,000 860,000 2,900,000 (a) Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. Round to one decimal place. (b) Which is (are) the most profitable per dollar invested?
Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z Sales $ 1,350,000 $ 940,000 $ 4,869,000 Operating Income 139,100 98,800 225,300 Investment in assets 272,900 434,400 3,253,200 The asset turnover (AT) for Division Y is calculated to be (rounded):
The sales, operating income, and invested assets for each division of Garner Company are as follows: Operating Invested Sales Income Assets Division E $3,000,000 $470,000 $2,500,000 Division F 3,600,000 430,000 2,400,000 Division G 6,000,000 560.000 3,000,000 a. Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. Round to one decimal place. Division E Division F Division G Profit margin X % X % X % Investment turnover Rate of return on investment X % X % X % b. Which division is the most profitable as per dollar invested? Division E
Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z Sales $ 1,431,000 $ 942,000 $ 4,792,000 Operating Income 214,300 124,300 230,000 Investment in assets 557,200 596,600 2,587,500 The asset turnover (AT) for Division X is (rounded):
1 ) Retail Division = ( 1125 / 2500 ) x 264000 = 118800 commercial division = ( 1375 / 2500 ) x 264000 = $ 145200 Using the data for Lee Company above along with the following data, determine the divisional income from operations for the Division and the Commercial Division:
LMN and all of its divisions are engaged solely in trading business. The 20x1 income statement of LMN Co. shows the following: Sales to unaffiliated 15,000,000 Intersegment sales Gain on sale of machinery Expenses 3,000,000 1,500,000 (10,000,000) 6.500,000 Net income 1. What is the minimum amount of segment revenue in order that a division can be considered a reportable segment? 2. In its 20x1 financial statements, LMN should disclose major customer data if sales to any single customer amount to at least
Presented below are the condensed income statements of Maine Corporation for the years ended December 31, 20x2, and 20x1. 20x2 20x1 Sales P2,500,000 P2,450,000 Cost of Goods Sold 1,675,000 1,650,000 Gross Profit 825,000 800,000 Operating Expenses 337,500 325,000 Operating income 487,500 475,000 Gain on sale of division 100,000 - 587,500 475,000 Income tax expense 176,250 142,500 Net income P411,250 P332,500 On October 10, 20x2, Maine entered into an agreement to sell the assets of one (1) of its geographical segments. The geographical segment comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the company. The segment was sold on December 31, 20x2, for P875,000.…
An entity and its divisions reported the following for the current year: Sales to unaffiliated customers 40,000,000 Intersegment sales of product similar to those sold to unaffiliated customers 12,000,000 Interest earned on loans to other operating segments 1,000,000 The entity and all of its divisions are engaged solely in manufacturing operations. To qualify as reportable segment, the segment revenue should at least be what amount? A. 5,300,000 B. 4,100,000 C. 5,200,000 D. 4,000,000
Agustin Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales Net operating income Average operating assets The division's margin is closest to: Multiple Choice O O 3.5% 19.7% 16.2% 15.0% $ 18,210,000 $ 637,350 $ 4,250,000
Lechon Company provided the following data for the current year: Sales Cost of goods sold Expenses Depreciation Income tax expense The entity has two major reportable segments, A and B. An analysis revealed that P1,000,000 of the total depreciation expense and P2,000,000 of the expenses are related to general corporate activities. The remaining expenses and sales are directly allocable to segment activities according to the following percentages: Sales Cost of goods sold Expenses Depreciation P60,000,000 28,000,000 14,000,000 4,000,000 4,000,000 Segment A 40% 35 40 40 Segment B 45% Others 15% 15 20 15 50 40 45 What amount should be reported as net income of Segment A?
Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z Sales $ 1,416,000 $ 831,000 $ 5,294,000 Operating Income 197,400 102,700 275,600 Investment in assets 380,600 498,600 3,618,400 The return on sales (ROS) for Division X is: (Round your percentages to one decimal place.)
Presented below are the condensed income statement of Vital Corporation for the years ended December 31, 2020 and 2019: 2020 5,000,000 3.350,000 1,650,000 675,000 975,000 200,000 1,175,000 411,250 763.750 2019 4,900,000 3,300,000 1,600,000 650,000 950,000 Sales Cost of goods sold Gross income Operating expenses Operating income Gain on sale of division 950,000 332,500 617.500 Net income before income tax Income tax expense (35%) Net income On October 10, 2020, Chalangs entered into an agreement to sell the assets of one of its geographical segments. The geographical segment comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the company. The segment was sold on December 31, 2020, for P1,750,000. The book value of the segment's assets was P1,550,000. The segment's contribution to Chalangs' operating income before tax for each year was as follows: 2020 113,750 loss 81,250 income 2019 Assume that by…