Required information Use the following information for the Problems below: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return. on invested capital is 8 percent. Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Division A ? $ 500,000 ? 20% ? ? Division B $ 11,000,000 $ 2,110,000 $ 2,570,000 ? ? ? ? Division C ? ? ? 25% ? 30% $ 132,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places.
Required information Use the following information for the Problems below: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return. on invested capital is 8 percent. Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Division A ? $ 500,000 ? 20% ? ? Division B $ 11,000,000 $ 2,110,000 $ 2,570,000 ? ? ? ? Division C ? ? ? 25% ? 30% $ 132,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
Use the following information for the Problems below:
The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return
on invested capital is 8 percent.
Sales revenue
Income
Average investment
Sales margin
Capital turnover
ROI
Residual income
Sales revenue
Income
Average investment
Sales margin
Capital turnover
ROI
Residual income
$
Division A
?
$ 500,000
?
20%
2
?
?
Division A
1,770,000
20 %
Required:
The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested
capital is 8 percent.
Note: Round "Capital turnover" answers to 2 decimal places.
1.00
%
Division B
$ 11,000,000
$ 2,110,000
$ 2,570,000
$
$
$
Division B
41,700,000
8,340,000
10,425,000
%
?
%
?
?
?
Division C
?
?
$
?
25%
?
30%
$ 132,000
Division C
25 %
20 %
516,000
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