a. Determine the missing items. Round rate of return on investment, profit margin, and investment turnover answers to one decimal place when required. Div. Sales Income from Operations Inv. Assets Rate of Return on Inv. Profit Margin Invest. Turnover A $ $35,000 $200,000 % % 1.6 B $455,000 $ $284,375 16% % C $525,000 $73,500 $ % % 1.2 D $800,000 $ $ % 13.0% 2.5 E $ $ $250,000 % 16.0% 2.0 b. Which division is most profitable in terms of income from operations? c. Which division is most profitable in terms of rate of return on investment?
a. Determine the missing items. Round rate of return on investment, profit margin, and investment turnover answers to one decimal place when required. Div. Sales Income from Operations Inv. Assets Rate of Return on Inv. Profit Margin Invest. Turnover A $ $35,000 $200,000 % % 1.6 B $455,000 $ $284,375 16% % C $525,000 $73,500 $ % % 1.2 D $800,000 $ $ % 13.0% 2.5 E $ $ $250,000 % 16.0% 2.0 b. Which division is most profitable in terms of income from operations? c. Which division is most profitable in terms of rate of return on investment?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Data for Divisions A, B, C, D, and E are as follows:
a. Determine the missing items. Round rate of
| Div. | Sales | Income from Operations | Inv. Assets | Rate of Return on Inv. | Profit Margin | Invest. Turnover | ||||
| A | $ | $35,000 | $200,000 | % | % | 1.6 | ||||
| B | $455,000 | $ | $284,375 | 16% | % | |||||
| C | $525,000 | $73,500 | $ | % | % | 1.2 | ||||
| D | $800,000 | $ | $ | % | 13.0% | 2.5 | ||||
| E | $ | $ | $250,000 | % | 16.0% | 2.0 |
b. Which division is most profitable in terms of income from operations?
c. Which division is most profitable in terms of rate of return on investment?
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