Bentz Co. has two divisions, A and B. Invested assets and condensed income stat Division A Division B Revenues Operating expenses Support department allocations Invested assets $190,000 $125,500 112,500 29,500 225,000 92,750 12,625 99,000 a. Prepare condensed income statements for the past year for each division. Bentz Co. Divisional Income Statements For th You F
Bentz Co. has two divisions, A and B. Invested assets and condensed income stat Division A Division B Revenues Operating expenses Support department allocations Invested assets $190,000 $125,500 112,500 29,500 225,000 92,750 12,625 99,000 a. Prepare condensed income statements for the past year for each division. Bentz Co. Divisional Income Statements For th You F
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject- account
Transcribed Image Text:Bentz Co. has two divisions, A and B. Invested assets and condensed income statement data for each division for the year ended December 31 are as follows:
Division A Division B
$125,500
92,750
12,625
99,000
a. Prepare condensed income statements for the past year for each division.
Bentz Co.
Divisional Income Statements
For the Year Ended December 31
Line Item Description Division A Division B
Revenues
Operating expenses
Support department allocations
Invested assets
Operating income
Profit margin
Investment turnover
b. Using the DuPont formula, determine the profit margin, investment turnover, and return on investment (ROI) for each division. Round the profit margin
percentage to two decimal places, the investment turnover to four decimal places, and the return on investment to one decimal place.
Division A
Division B
Operating expenses
Support department allocations
Invested assets
$190,000
112,500
29,500
225,000
Operating income
a. Prepare condensed income statements for the past year for each division.
Bentz Co.
Divisional Income Statements
For the Year Ended December 31
Line Item Description Division A Division B
112,500
29,500
225,000
Profit margin
Investment turnover
Rate of return on investment
92,750
12,625
99,000
4
b. Using the DuPont formula, determine the profit margin, investment turnover, and return on investment (ROI) for each division. Round the profit margin
percentage to two decimal places, the investment turnover to four decimal places, and the return on investment to one decimal place.
Division A
Division B
D
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