1 of 1 GE1715 SAMPLE PROBLEMS ON FINANCIAL RATIOS 1. The management of International Heal Medical Company is evaluating the performance of its three (3) divisions. The Booboo Division had operating profit of P24,950 and on average used assets with a book value of P311,900. The Splint Division had an operating profit of P17,500 and used average assets of P177,950. The Intensive Care Division had an operating profit of P28,500 and average assets of P475,000. The company is planning to award the Intensive Care Division relying on its high operating profit. Should the management continue with this decision? Justify your answer.

1 of 1 GE1715 SAMPLE PROBLEMS ON FINANCIAL RATIOS 1. The management of International Heal Medical Company is evaluating the performance of its three (3) divisions. The Booboo Division had operating profit of P24,950 and on average used assets with a book value of P311,900. The Splint Division had an operating profit of P17,500 and used average assets of P177,950. The Intensive Care Division had an operating profit of P28,500 and average assets of P475,000. The company is planning to award the Intensive Care Division relying on its high operating profit. Should the management continue with this decision? Justify your answer.

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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