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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 Division A ? $ 480,000 ? 20% 1 Division B $ 11,000,000 $ 2,020,000 $ 2,620,000 ? 7 7 Division C 7 ? ? 25% ? 30% $ 128,000

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 Division A ? $ 480,000 ? 20% 1 Division B $ 11,000,000 $ 2,020,000 $ 2,620,000 ? 7 7 Division C 7 ? ? 25% ? 30% $ 128,000

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 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 ? $ 480,000 $ Division A 1,710,000 20 % 1.00 ? 20% 1 ? ? 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 B $ 11,000,000 $ 2,020,000 $ 2,620,000 $ $ $ Division B 41,100,000 8,220,000 10,275,000 % 7 7 % 7 7 Division C 7 $ ? ? 25% ? 30% $ 128,000 Division C 25% 20 % 495,000
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 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 ? $ 480,000 $ Division A 1,710,000 20 % 1.00 ? 20% 1 ? ? 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 B $ 11,000,000 $ 2,020,000 $ 2,620,000 $ $ $ Division B 41,100,000 8,220,000 10,275,000 % 7 7 % 7 7 Division C 7 $ ? ? 25% ? 30% $ 128,000 Division C 25% 20 % 495,000
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