PDT Co. has two divisions, East and West. Invested assets and condensed income statement data for each division for the past year ended December 31 are as follows: East Division West Division Revenues $1,200,000 $800,000 Operating expenses 950,000 640,000 Service department charges 145,000 72,000 Invested assets 800,000 500,000 a. Prepare condensed income statements for the past year for each division. PDT Co. Divisional Income Statements For the Year Ended December 31, 20-- East Division West Division Revenues Operating expenses Operating income before service department charges Service department charges | x Operating income b. Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. Round your answers to two decimal places and do not enter the percent sign (for example, enter 10.25% a "10.25"). East Division West Division Profit margin X % x % Investment turnover Rate of return on investment X % X %

PDT Co. has two divisions, East and West. Invested assets and condensed income statement data for each division for the past year ended December 31 are as follows: East Division West Division Revenues $1,200,000 $800,000 Operating expenses 950,000 640,000 Service department charges 145,000 72,000 Invested assets 800,000 500,000 a. Prepare condensed income statements for the past year for each division. PDT Co. Divisional Income Statements For the Year Ended December 31, 20-- East Division West Division Revenues Operating expenses Operating income before service department charges Service department charges | x Operating income b. Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. Round your answers to two decimal places and do not enter the percent sign (for example, enter 10.25% a "10.25"). East Division West Division Profit margin X % x % Investment turnover Rate of return on investment X % X %

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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Divisional Income Statements The following data were summarized from the accounting records for Ruiz Industries Inc. for the year ended November 30, 20Y8: Cost of goods sold: Support department allocations: Commercial Division $420,760 Commercial Division $57,380 Residential Division 203,490 Residential Division 35,250 Administrative expenses: Sales: Commercial Division $76,500 Commercial Division $637,510 Residential Division 72,680 Residential Division 363,380 Prepare divisional income statements for Ruiz Industries Inc. Ruiz Industries Inc. Divisional Income Statements For the Year Ended November 30, 20Y8 Commercial Division Residential Division $ $
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