3. Based on segment margin and average assets, compute the profit margin4. Based on segment margin and average assets, compute the asset turnover5. Based on segment margin and average assets, compute the ROI. Creative Business Solutions (CBS), a division of Doug Jorgenson CPA, buys andinstalls modular office components. For the most recent year, the division had thefollowing performance targets:Asset turnover2.5Profit marginTarget rate of return on investments for RI 13%Cost of capitalIncome tax rate6%10%40%Actual information concerning the company's performance for last year follows:Total assets at beginning of yearTotal assets at end of yearTotal invested capital (annual average).Sales$3,600,0005,300,0008,000,0009,000,0003,650,0004,770,000675,000Variable operating costsDirect fixed costsAllocated fixed costs

WORKING : 1. SEGMENT MARGIN FOR CBS : PARTICULARS AMOUNT $ SALES $9,000,000 VARIABLE…

Creative Business Solutions (CBS), a division of Doug Jorgenson CPA, buys and installs modular office components. For the most recent year, the division had the following performance targets: Asset turnover 2.5 6% Profit margin Target rate of return on investments for RI 13% Cost of capital Income tax rate 10% 40% Actual information concerning the company's performance for last year follows: Total assets at beginning of year Total assets at end of year Total invested capital (annual average). Sales $3,600,000 5,300,000 8,000,000 9,000,000 3,650,000 4,770,000 675,000 Variable operating costs Direct fixed costs Allocated fixed costs

Creative Business Solutions (CBS), a division of Doug Jorgenson CPA, buys and installs modular office components. For the most recent year, the division had the following performance targets: Asset turnover 2.5 6% Profit margin Target rate of return on investments for RI 13% Cost of capital Income tax rate 10% 40% Actual information concerning the company's performance for last year follows: Total assets at beginning of year Total assets at end of year Total invested capital (annual average). Sales $3,600,000 5,300,000 8,000,000 9,000,000 3,650,000 4,770,000 675,000 Variable operating costs Direct fixed costs Allocated fixed costs

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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Please answer step by step with explanation
A multi- step income statement ___________. A. Seperates cost of goods sold from operating expenses. B. Considers imterest revenue an operating activity. C. Is another name for a simple income statement. D. Combines cost of goods sold and operating expenses.
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