FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Return on investment

Commodore Entertainment has four profitable business segments, described as follows:

• Media Networks: Television and radio
• Parks and Resorts: Resorts, including Commodore land
• Studio Entertainment: Motion pictures, musical recordings, and stage plays
• Consumer Products: Character merchandising, Commodore stores, books, and magazines

Commodore Entertainment recently reported sector income from operations, revenue, and invested assets as follows:

      Income from
    Operations
    
Revenue
    Invested
    Assets
Media Networks $193,644   $586,800   $978,000  
Parks and Resorts 63,954   392,700   561,000  
Studio Entertainment 12,927   333,600   417,000  
Consumer Products 118,233   469,800   261,000  

a. Use the DuPont formula to determine the return on investment for the four Commodore Entertainment sectors. Round Profit Margin and ROI to one decimal place and Investment Turnover to two decimal places.

  Profit Margin Investment Turnover ROI
Media Networks  %    %
Parks and Resorts  %    %
Studio Entertainment  %    %
Consumer Products  %    %

 

 

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