s !Required informationUse the following information for the Problems below:The following clata pertain to three divisions of Nevada Aggregates, Incorporated. The company'srequired rate of return on invested capital is 8 percent.Sales revenue.IncomeAverage investmentSales marginCapital turnover.ROIResidual incomeSales revenueIncomeAverage investmentSales marginCapital turnoverROIResidual income$ 8,550,000$ 1,710,000$8,550,000Division A?$ 480,000?20%1201.0020$1,026,000%Required:The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate ofreturn on invested capital is 8 percent.Note: Round "Capital turnover" answers to 2 decimal places.Answer is complete but not entirely correct.Division ADivision B41,100,0008,220,00010,275,000%?7$$$Division B$ 11,000,000$ 2,020,000$ 2,620,000$20 %4.0080??7?7,398,000%$$Division C?7$$?25%?30%$ 128,000Division C2,911,764727,9412,911,76425 %1.00 x20495,000%

Return on investment is a measure used to evaluate investment performance and profitability. It…

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

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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 3PB: The income statement comparison for Rush Delivery Company shows the income statement for the current...

See similar textbooks

Similar questions

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?
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 4,150,000
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 $1,010,000 $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…
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 $ $ $…
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 $1,120,000 $1,160,000 $1,130,000 Operating expenses 603,400 486,800 854,000 Invested assets 4,100,000 3,400,000 2,300,000 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 $fill in…
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…
Profit Margin, Investment Turnover, and ROI Cash Company has income from operations of $43,578, invested assets of $269,000, and sales of $726,300. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin % b. Investment turnover c. Return on investment %
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 Fund Division Electronic Brokerage Division Investment Banking Division Fee revenue $1,500,000 1,570,000 1,530,000 Operating expenses 807,000 742000 1,158,000 Invested assets 5,500,000 4600000 3,100,000 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 service department charges. E.F. Lynch Company Divisional Income Statements For the Year Ended June 30, 20Y8 Mutual Fund Division Electronic Brokerage Division Investment Banking Division Fee revenue…
Profit Margin, Investment Turnover, and ROI Briggs Company has operating income of $108,955, invested assets of $283,000, and sales of $990,500. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin % b. Investment turnover c. Return on investment %
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 Fund Division Electronic Brokerage Division Investment Banking Division Fee revenue $630,000 $650,000 $640,000 Operating expenses 340,200 308,000 484,000 Invested assets 2,300,000 1,900,000 1,300,000 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 service department charges. E.F. Lynch Company Divisional Income Statements For the Year Ended June 30, 20Y8 Mutual Fund Division Electronic Brokerage Division Investment Banking Division Fee revenue $fill in…
The sales, income from operations, and invested assets for each division of Jackson Corporation are as follows: Sales Income from Operations Invested Assets Division E $4,000,000 $550,000 $2,400,000 Division F 4,800,000 760,000 2,500,000 Division G 7,000,000 860,000 2,800,000 (a) Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. Round answers to one decimal place. (b) Which Division is the most profitable per dollar invested? (a) (b)
Simple ROI and Residual Income Calculations. Consider the following data: 1.) DIVISION X Y Z Invested Capital P2,000,000 (1)1,300,000 P1,250,000 Income (2) 100,000 P182,000 P 150,000 Revenue P4,000,000 P3,640,000 (3) 3,750,000 Income Percentage of Revenue 2.5% (4) 5% (5) 4% Capital Turnover (6) 2 (7) 2.8 3 Rate of Return on Invested Capital (8) 5% 14% (9) 12% Required: 1. Which division is the best performer 2. Suppose each division is assessed an imputed interest rate of 20% on invested capital. Compute the residual income for each division.