Home Decor Inc., manufactures home cleaning products. The company has two divisions, Bleach and Cleanser. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 2020: Bleach Cleanser ASSETS Book Value Current value $325,000 $315,000 $410,000 $370,000 O A. 30%; 42% OB. 49%; 34% OC. 34%; 49% O D. 42%, 30% INCOME Book value $135,000 $125,000 Current value $155,000 $125,000 The company is currently using a 15% required rate of retum. What are Bleach's and Cleanser's retum on investment based on book values, respectively? ...

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Home Decor Inc., manufactures home cleaning products. The company has two divisions, Bleach and Cleanser. Because of different accounting
methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 2020:
Bleach
Cleanser
ASSETS
OA. 30%; 42%
OB. 49%; 34%
OC. 34%; 49%
O D. 42%; 30%
Book Value
$325,000
$410,000
Current value
$315,000
$370,000
INCOME
Book value
$135,000
$125,000
Current value
$155,000
$125,000
The company is currently using a 15% required rate of retum.
What are Bleach's and Cleanser's retum on investment based on book values, respectively?
C...
Transcribed Image Text:Home Decor Inc., manufactures home cleaning products. The company has two divisions, Bleach and Cleanser. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 2020: Bleach Cleanser ASSETS OA. 30%; 42% OB. 49%; 34% OC. 34%; 49% O D. 42%; 30% Book Value $325,000 $410,000 Current value $315,000 $370,000 INCOME Book value $135,000 $125,000 Current value $155,000 $125,000 The company is currently using a 15% required rate of retum. What are Bleach's and Cleanser's retum on investment based on book values, respectively? C...
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