Required information [The following information applies to the questions displayed below.] A food manufacturer reports the following for two of its divisions for a recent year. (5 millions) Invested assets, beginning Invested assets, ending Sales Operating income Compute return on investment. Compute profit margin. Compute investment turnover for the year. Beverage Division $2,685 2,605 2,693 361 Cheese Division $4,480 4,412 3,937 646

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Required information
[The following information applies to the questions displayed below.]
A food manufacturer reports the following for two of its divisions for a recent year.
($ millions)
Invested assets, beginning
Invested assets, ending
Sales
Operating income
- Compute return on investment.
Compute profit margin.
Compute investment turnover for the year.
Investment Center
Beverage
Cheese
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Compute return on investment. (Enter your answers in millions.)
Investment Center
Beverage
Cheese
Investment Center
Beverage
Cheese
Choose Numerator:
($ millions)
Required 1 Required 2 Required 3
Compute profit margin. (Enter your answers in millions.)
Profit Margin
Targeted return
Target Income
Residual Income
Choose Numerator:
Residual income
Choose Numerator:
Return on Investment
1
1
1
Beverage
Beverage
Division
$2,685
2,605
2,693
361
Beverage
1
1
1
Investment Turnover
1
1
Cheese
Division
Choose Denominator:
1
$4,480
4,412
3,937
646
Choose Denominator:
Required 1 Required 2 Required 3
Compute investment turnover for the year. (Enter your answers in millions.)
/Choose Denominator:
Cheese
Cheese
=
=
=
=
=
=
a
=
=
Assume that each of the company's divisions has a required rate of return of 8%. Compute residual income for each division. (Enter
your answers in millions.)
=
.
Return on Investment
Return on investment
Profit Margin
Profit margin
Investment Turnover
Investment turnover
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] A food manufacturer reports the following for two of its divisions for a recent year. ($ millions) Invested assets, beginning Invested assets, ending Sales Operating income - Compute return on investment. Compute profit margin. Compute investment turnover for the year. Investment Center Beverage Cheese Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment. (Enter your answers in millions.) Investment Center Beverage Cheese Investment Center Beverage Cheese Choose Numerator: ($ millions) Required 1 Required 2 Required 3 Compute profit margin. (Enter your answers in millions.) Profit Margin Targeted return Target Income Residual Income Choose Numerator: Residual income Choose Numerator: Return on Investment 1 1 1 Beverage Beverage Division $2,685 2,605 2,693 361 Beverage 1 1 1 Investment Turnover 1 1 Cheese Division Choose Denominator: 1 $4,480 4,412 3,937 646 Choose Denominator: Required 1 Required 2 Required 3 Compute investment turnover for the year. (Enter your answers in millions.) /Choose Denominator: Cheese Cheese = = = = = = a = = Assume that each of the company's divisions has a required rate of return of 8%. Compute residual income for each division. (Enter your answers in millions.) = . Return on Investment Return on investment Profit Margin Profit margin Investment Turnover Investment turnover
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