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Question Content Area 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: Line Item Description Division A Division B Revenues $190,000 $125,500 Operating expenses 112,500 92,750 Support department allocations 29,500 12,625 Invested assets 225,000 99,000 Question Content Area a.  Prepare condensed income statements for the past year for each division. Bentz Co.Divisional Income StatementsFor the Year Ended December 31 Line Item Description Division A Division B   $- Select - $- Select -   - Select - - Select -   $- Select - $- Select -   - Select - - Select - Operating income $Operating income $Operating income   Question Content Area 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. Line Item Description Division A Division B Profit margin     Investment turnover     Rate of return on investment

Question Content Area 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: Line Item Description Division A Division B Revenues $190,000 $125,500 Operating expenses 112,500 92,750 Support department allocations 29,500 12,625 Invested assets 225,000 99,000 Question Content Area a.  Prepare condensed income statements for the past year for each division. Bentz Co.Divisional Income StatementsFor the Year Ended December 31 Line Item Description Division A Division B   $- Select - $- Select -   - Select - - Select -   $- Select - $- Select -   - Select - - Select - Operating income $Operating income $Operating income   Question Content Area 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. Line Item Description Division A Division B Profit margin     Investment turnover     Rate of return on investment

FINANCIAL ACCOUNTING
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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  1. Question Content Area

    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:

    Line Item Description Division A Division B
    Revenues $190,000 $125,500
    Operating expenses 112,500 92,750
    Support department allocations 29,500 12,625
    Invested assets 225,000 99,000

    Question Content Area

    a.  Prepare condensed income statements for the past year for each division.

    Bentz Co.Divisional Income StatementsFor the Year Ended December 31
    Line Item Description Division A Division B
     
    		 $- Select - $- Select -
     
    		 - Select - - Select -
     
    		 $- Select - $- Select -
     
    		 - Select - - Select -
    Operating income $Operating income $Operating income
     

    Question Content Area

    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.

    Line Item Description Division A Division B
    Profit margin    
    Investment turnover    
    Rate of return on investment    
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