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29. The Global Products Corporation has three subsidiaries. Heavy Machinery Electronics Medical Supplies $20,040,000 $5,980,000 $4,730,000 Sales 1,700,000 592,000 402,000 Net income (after taxes) 8,340,000 8,760,000 3,570,000 Assets a. Which division has the lowest return on sales? b. Which division has the highest return on assets? Compute the return on assets for the entire corporation. C.

29. The Global Products Corporation has three subsidiaries. Heavy Machinery Electronics Medical Supplies $20,040,000 $5,980,000 $4,730,000 Sales 1,700,000 592,000 402,000 Net income (after taxes) 8,340,000 8,760,000 3,570,000 Assets a. Which division has the lowest return on sales? b. Which division has the highest return on assets? Compute the return on assets for the entire corporation. C.

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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29. The Global Products Corporation has three subsidiaries. Analysis by divisions (LO3-2) Medical Supplies Heavy Machinery Electronics $20,040,000 $5,980,000 $4,730,000 Sales Net income (after taxes) ... 1,700,000 592,000 402,000 8,340,000 8,760,000 3,570,000 Assets а. Which division has the lowest return on sales? b. Which division has the highest return on assets? c. Compute the return on assets for the entire corporation. d. If the $8,760,000 investment in the heavy machinery division is sold off and redeployed in the medical supplies subsidiary at the same rate of return on assets currently achieved in the medical supplies division, what will be the new return on assets for the entire corporation?
Transcribed Image Text:29. The Global Products Corporation has three subsidiaries. Analysis by divisions (LO3-2) Medical Supplies Heavy Machinery Electronics $20,040,000 $5,980,000 $4,730,000 Sales Net income (after taxes) ... 1,700,000 592,000 402,000 8,340,000 8,760,000 3,570,000 Assets а. Which division has the lowest return on sales? b. Which division has the highest return on assets? c. Compute the return on assets for the entire corporation. d. If the $8,760,000 investment in the heavy machinery division is sold off and redeployed in the medical supplies subsidiary at the same rate of return on assets currently achieved in the medical supplies division, what will be the new return on assets for the entire corporation?
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