Required information Use the following information for the Problems below: The following cata pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Division A ? $ 480,000 ? 20% 1. ? ? Division B $ 11,000,000 $ 2,020,000 $ 2,620,000 Division A ? ? ? Division C ? Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate return on invested capital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division B ? ? 25% ? 30% $ 128,000 Answer is complete but not entirely correct. Division C

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required information
Use the following information for the Problems below:
The following clata pertain to three divisions of Nevada Aggregates, Incorporated. The company's
required rate of return on invested capital is 8 percent.
Sales revenue.
Income
Average investment
Sales margin
Capital turnover.
ROI
Residual income
Sales revenue
Income
Average investment
Sales margin
Capital turnover
ROI
Residual income
$ 8,550,000
$ 1,710,000
$8,550,000
Division A
?
$ 480,000
?
20%
1
20
1.00
20
$1,026,000
%
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.
Answer is complete but not entirely correct.
Division A
Division B
41,100,000
8,220,000
10,275,000
%
?
7
$
$
$
Division B
$ 11,000,000
$ 2,020,000
$ 2,620,000
$
20 %
4.00
80
?
?
7
?
7,398,000
%
$
$
Division C
?
7
$
$
?
25%
?
30%
$ 128,000
Division C
2,911,764
727,941
2,911,764
25 %
1.00 x
20
495,000
%
Transcribed Image Text:! Required information Use the following information for the Problems below: The following clata pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Sales revenue. Income Average investment Sales margin Capital turnover. ROI Residual income Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income $ 8,550,000 $ 1,710,000 $8,550,000 Division A ? $ 480,000 ? 20% 1 20 1.00 20 $1,026,000 % 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. Answer is complete but not entirely correct. Division A Division B 41,100,000 8,220,000 10,275,000 % ? 7 $ $ $ Division B $ 11,000,000 $ 2,020,000 $ 2,620,000 $ 20 % 4.00 80 ? ? 7 ? 7,398,000 % $ $ Division C ? 7 $ $ ? 25% ? 30% $ 128,000 Division C 2,911,764 727,941 2,911,764 25 % 1.00 x 20 495,000 %
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