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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 Division A Division B Division C ? $ 12,000,000 ? $510,000 $ 2,140,000 ? ? $ 2,590,000 ? 30% ? 35% 3 ? ? ? ? 30% ? ? $ 136,000

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 Division A Division B Division C ? $ 12,000,000 ? $510,000 $ 2,140,000 ? ? $ 2,590,000 ? 30% ? 35% 3 ? ? ? ? 30% ? ? $ 136,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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! 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 reve revenue Income Average investment Sales margin Capital turnover ROI Residual income ? Division A Division B Division C ? $ 12,000,000 ? $ 510,000 $ 2,140,000 ? ? $ 2,590,000 30% ? 35% 3 ? ? ? 30% ? $ 136,000 ? ? 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 $ 40,700,000 Income $ 1,840,000 $ 8,140,000 Average investment $ 10,175,000 Sales margin 20 % % 25 % Capital turnover ROI Residual income 1.00 % % 20 % $ 489,000
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 reve revenue Income Average investment Sales margin Capital turnover ROI Residual income ? Division A Division B Division C ? $ 12,000,000 ? $ 510,000 $ 2,140,000 ? ? $ 2,590,000 30% ? 35% 3 ? ? ? 30% ? $ 136,000 ? ? 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 $ 40,700,000 Income $ 1,840,000 $ 8,140,000 Average investment $ 10,175,000 Sales margin 20 % % 25 % Capital turnover ROI Residual income 1.00 % % 20 % $ 489,000
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