! Required information 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 return on invested capital is 8 percent. Division A Division B Division C $ Sales revenue ? ? 11,000,000 $ $ Income Average investment ? 550,000 2,020,000 $ ? ? 2,540,000 Sales margin 20% ? 25% Capital turnover 2 ? ? ROI ? ? 30% $ Residual income ? ? 139,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue $ Income $ 41,000,000 $ 9,020,000 1,750,000 Average investment $ 10,250,000 Sales margin 20% % 25 % Capital turnover 1.00 ROI % % 20% Residual income $ 492,000
! Required information 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 return on invested capital is 8 percent. Division A Division B Division C $ Sales revenue ? ? 11,000,000 $ $ Income Average investment ? 550,000 2,020,000 $ ? ? 2,540,000 Sales margin 20% ? 25% Capital turnover 2 ? ? ROI ? ? 30% $ Residual income ? ? 139,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue $ Income $ 41,000,000 $ 9,020,000 1,750,000 Average investment $ 10,250,000 Sales margin 20% % 25 % Capital turnover 1.00 ROI % % 20% Residual income $ 492,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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