Use the following information for the Problems below: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of on invested capital is 8 percent. Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Division A ? $ 440,000 ? 40% 2 ? ? Division B $ 10,000,000 $ 2,160,000 $ 2,600,000 ? ? ? ? Division C ? ? ? 45% ? 40% $ 139,000
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- Calculator Data for Divisions A, B, C, D, and E are as follows: a. Determine the missing items. Round rate of return on investment, profit margin, and investment turnover answers to one decimal place when required. Div. Sales Income from Operations Inv. Assets Rate of Return on Inv. Profit Margin Invest. Turnover A $ $35,000 $200,000 % % 1.6 B $455,000 $ $284,375 16% % C $525,000 $73,500 $ % % 1.2 D $800,000 $ $ % 13.0% 2.5 E $ $ $250,000 % 16.0% 2.0 b. Which division is most profitable in terms of income from operations? c. Which division is most profitable in terms of rate of return on investment?The following results are available for Division X and Y:Division X Division YProfit before interest and tax P185 000 P172, 000Capital employed P1, 540, 000 P1, 650, 000The cost of capital is 10%.Calculate and comment on the performance of the departments based on:a. Return on capital employed (4 marks)b. Residual incomRequired: The following data pertain to three divisions of Nevada Aggregates, Inc. The company's required rate of return on invested capital is 6 percent. (Round "Capital turnover" answers to 2 decimal places.) Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Division A $ $ $ $ 9,500,000 1,710,000 $ 9,500,000 $ 18 % 1.00 18 % $ 1,140,000 $ Division B 40,800,000 8,160,000 10,200,000 20 % 4.00 80 % 7,548,000 Division C 20 % 0.90 18 % 501,000
- The following data pertain to Dakota Division's most recent year of operations. Income $ 4,350,000 50,000,000 17,500,000 Sales revenue Average invested capital Required: Compute Dakota Division's sales margin, capital turnover, and return on investment for the year. (Round your answers to 2 decimal places (i.e., .1234 should be entered as 12.34).) Sales margin % Capital turnover Return on investment % < Prev 3 of 7 NextDivisional Income Statements and Return on Investment Analysis E.F. Lynch Company is a diversified investment company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June 30, 20Y8, are as follows: Mutual FundDivision ElectronicBrokerageDivision InvestmentBankingDivision Fee revenue $1,010,000 $1,060,000 $1,030,000 Operating expenses 492,000 390,400 727,600 Invested assets 3,700,000 3,100,000 2,100,000 The management of E.F. Lynch Company is evaluating each division as a basis for planning a future expansion of operations. Required: Question Content Area 1. Prepare condensed divisional income statements for the three divisions, assuming that there were no service department cost allocations. E.F. Lynch CompanyDivisional Income StatementsFor the Year Ended June 30, 20Y8 MutualFundDivision ElectronicBrokerageDivision InvestmentBankingDivision Fee…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
- Divisional income statements and return on investment analysis E.F. Lynch Company is a diversified investment company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June 30, 20Y8, are as follows: Fee revenue Operating expenses Invested assets Required: Electronic Investment Mutual Fund Brokerage Banking Division Division Division $1,090,000 $1,130,000 $1,080,000 586,000 4,000,000 3,300,000 The management of E.F. Lynch Company is evaluating each division as a basis for planning a future expansion of operations. Line Item Description Fee revenue Operating expenses Operating income Division 1. Prepare condensed divisional income statements for the three divisions, assuming that there were no support department allocations. E.F. Lynch Company Divisional Income Statements For the Year Ended June 30, 20Y8 476,600 Mutual Fund Division Electronic Brokerage Division Feedback Check My Work 1. For…Margin, Turnover, Return on Investment Pelak Company had sales of $5,003,000, expenses of $4,607,000, and average operating assets of $4,840,000. Required: 1. Compute the operating income.$ 2. Compute the margin (as a percent) and turnover ratio. If required, round your answers to one decimal place. Margin % Turnover 3. Compute the ROI as a percent. Use the part 2 final answers in these calculations and round the final answer to two decimal places.%Divisional Income Statements and Return on Investment Analysis E.F. Lynch Company is a diversified investment company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June 30, 20Y8, are as follows: Mutual FundDivision ElectronicBrokerageDivision InvestmentBankingDivision Fee revenue $1,090,000 $1,160,000 $1,080,000 Operating expenses 530,000 486,800 763,200 Invested assets 4,000,000 3,400,000 2,200,000 The management of E.F. Lynch Company is evaluating each division as a basis for planning a future expansion of operations. Required: 1. Prepare condensed divisional income statements for the three divisions, assuming that there were no support department allocations. E.F. Lynch Company Divisional Income Statements For the Year Ended June 30, 20Y8 MutualFundDivision ElectronicBrokerageDivision InvestmentBankingDivision Fee revenue $ $ $…
- Calculate the sales margin, asset turnover, and ROA for the companies below: Average Capital Assets Company A B Net Income Sales 350,000 5,500,000 12,000,000 .06 845,000 9,350,000 13,500,000 Sales Margin 1 Asset Turnover 2.9 1.44 Note: Please write the sales Margin and ROI as a percentage or as a decimal rounded to two places behind the decimal point. ROI 6,500,000 4,150,000Data for Divisions A, B, C, D, and E are as follows: a. Determine the missing items. Round return on investment, profit margin, and investment turnover answers to one decimal place when required. Div. Sales Income from Operations Inv. Assets Return on Invest. Profit Margin Invest. Turnover A $fill in the blank 1 $35,000 $200,000 fill in the blank 2 % fill in the blank 3 % 1.6 B $455,000 $fill in the blank 4 $284,375 16% fill in the blank 5 % fill in the blank 6 C $525,000 $73,500 $fill in the blank 7 fill in the blank 8 % fill in the blank 9 % 1.2 D $800,000 $fill in the blank 10 $fill in the blank 11 fill in the blank 12 % 13.0% 2.5 E $fill in the blank 13 $fill in the blank 14 $250,000 fill in the blank 15 % 16.0% 2.0 b. Which division is most profitable in terms of income from operations? c. Which division is most profitable in terms of return on investment?Net Income Planning Selected operating data for Venora Company in four independent situations are shown below. Fill in the blanks for each independent situation. A B C D Sales $410,000 $ 129,000 C. $ 530,000 e. $630,000 Variable expense $ 270,000 a. $57,000 $ 159,000 f. $ 378,000 g. Fixed expense $ 10,000 b. $56,000 $240,000 $270,000 Net income (loss) before tax $130,000 $16,000 $131,000 $(18,000) Units sold 7,000 213,000 x d. Unit contribution margin $20 $9 Contribution margin ratio 0.7 40 × h.