
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
$
Division A
?
$ 410,000
Division A
1,710,000
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.
20 %
1.00
?
30%
2
?
?
%
Division B
$ 11,000,000
$ 2,080,000
$ 2,620,000
$
$
$
Division B
41,100,000
8,220,000
10,275,000
%
?
?
%
?
?
Division C
?
?
?
35%
?
30%
$ 135,000
$
Division C
25 %
20 %
495,000
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