
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:!
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.
Sales revenue
Income
Average investment
Sales margin
Capital turnover
ROI
Residual income
Sales revenue
Income
Average investment
Sales margin
Capital turnover
ROI
Residual income
S
Division A
Division A
2
$ 530,000
?
400%
2
?
?
1,620,000
Required:
The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested
capital is 6 percent.
Note: Round "Capital turnover" answers to 2 decimal places.
18 %
1.00
Division B
$ 11,000,000
$ 2,130,000
$ 2,690,000
$
$
$
Division B
40,200,000
8,040,000
10,050,000
%
?
%
?
Division C
?
?
?
45%
?
48%%
$
$ 139,000
Division C
20%
18 %
480,000
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