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Ace Paints is a national paint manufacturer and retailer The company is segmented into five divisions: Paint Stores (branded retail locations), Consumer (paint sold through home improvement stores), Automotive (sales to auto manufacturers), International, and Administration Read the requirements Requirement 1. Calculate each division's ROL Round all of your answers to four decimal places Begin by selecting the formula to calculate return on investment (ROI), and then enter the amounts to calculate each division's ROI. (Round your calculations to four decimal places and enter your answer as a percent rounded to two decimal places, XXX%) Requirements 1. Calculate each division's ROI. Round all of your answers to four decimal places 2. Calculate each division's profit margin ratio. Interpret your results 3. Calculate each division's asset tumover ratio. Interpret your results 4. Use the expanded ROI formula to confirm your results from Requirement 1, Interpret your resu 5 Calculate each division's R. Interpret your results, and offer a recommendation for any division with negative R Describe some of the factors that management considers when setting its minimum target rate of return The following is seisacted divisional information for its two largest divisions Pant Stor and Consumer (Click the iconi view the information) Management has specified a 19% target rate of return RO Data table Paint Stores Consumer Net Sales Revenue $ 4.000.000 $ 1,290,000 Print Operating Income Average Total Assets 470,000 $ 188,000 Done 1,420,000 1.585.000

Ace Paints is a national paint manufacturer and retailer The company is segmented into five divisions: Paint Stores (branded retail locations), Consumer (paint sold through home improvement stores), Automotive (sales to auto manufacturers), International, and Administration Read the requirements Requirement 1. Calculate each division's ROL Round all of your answers to four decimal places Begin by selecting the formula to calculate return on investment (ROI), and then enter the amounts to calculate each division's ROI. (Round your calculations to four decimal places and enter your answer as a percent rounded to two decimal places, XXX%) Requirements 1. Calculate each division's ROI. Round all of your answers to four decimal places 2. Calculate each division's profit margin ratio. Interpret your results 3. Calculate each division's asset tumover ratio. Interpret your results 4. Use the expanded ROI formula to confirm your results from Requirement 1, Interpret your resu 5 Calculate each division's R. Interpret your results, and offer a recommendation for any division with negative R Describe some of the factors that management considers when setting its minimum target rate of return The following is seisacted divisional information for its two largest divisions Pant Stor and Consumer (Click the iconi view the information) Management has specified a 19% target rate of return RO Data table Paint Stores Consumer Net Sales Revenue $ 4.000.000 $ 1,290,000 Print Operating Income Average Total Assets 470,000 $ 188,000 Done 1,420,000 1.585.000

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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K Ace Paints is a national paint manufacturer and retailer. The company is segmented into five divisions: Paint Stores (branded retail locations), Consumer (paint sold through home improvement stores). Automotive (sales to auto manufacturers), International, and Administration Read the requirements Requirement 1. Calculate each division's ROL Round all of your answers to four decimal places Begin by selecting the formula to calculate return on investment (ROI), and then enter the amounts to calculate each division's ROI. (Round your calculations to four decimal places and enter your antwer as a percent rounded to two decimal places, XXX%) Requirements 1. Calculate each division's ROI. Round all of your answers to four decimal places 2. Calculate each division's profit margin ratio. Interpret your results 3. Calculate each division's asset tumover ratio. Interpret your results 4. Use the expanded ROI formula to confirm your results from Requirement 1, Interpret your results. 5 Calculate each division's R. Interpret your results, and offer a recommendation for any division with negative R Describe some of the factors that management considers when setting its minimum target rate of return - X The following is selected divisional information for its two largest divisions: Paint Sto and Consumer (Click the icon to view the information) Management has specified a 19% target rate of return RO Data table Paint Stores Consumer Net Sales Revenue $4,000,000 $ 1,290,000 Print Operating Income Average Total Assets 470,000 $ 160,000 Done 1420.000 1.505.000 X
Transcribed Image Text:K Ace Paints is a national paint manufacturer and retailer. The company is segmented into five divisions: Paint Stores (branded retail locations), Consumer (paint sold through home improvement stores). Automotive (sales to auto manufacturers), International, and Administration Read the requirements Requirement 1. Calculate each division's ROL Round all of your answers to four decimal places Begin by selecting the formula to calculate return on investment (ROI), and then enter the amounts to calculate each division's ROI. (Round your calculations to four decimal places and enter your antwer as a percent rounded to two decimal places, XXX%) Requirements 1. Calculate each division's ROI. Round all of your answers to four decimal places 2. Calculate each division's profit margin ratio. Interpret your results 3. Calculate each division's asset tumover ratio. Interpret your results 4. Use the expanded ROI formula to confirm your results from Requirement 1, Interpret your results. 5 Calculate each division's R. Interpret your results, and offer a recommendation for any division with negative R Describe some of the factors that management considers when setting its minimum target rate of return - X The following is selected divisional information for its two largest divisions: Paint Sto and Consumer (Click the icon to view the information) Management has specified a 19% target rate of return RO Data table Paint Stores Consumer Net Sales Revenue $4,000,000 $ 1,290,000 Print Operating Income Average Total Assets 470,000 $ 160,000 Done 1420.000 1.505.000 X
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