! 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. Division A Division B Division C $ Sales revenue ? ? 11,000,000 $ $ Income Average investment ? 550,000 2,020,000 $ ? ? 2,540,000 Sales margin 20% ? 25% Capital turnover 2 ? ? ROI ? ? 30% $ Residual income ? ? 139,000 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. Division A Division B Division C Sales revenue $ Income $ 41,000,000 $ 9,020,000 1,750,000 Average investment $ 10,250,000 Sales margin 20% % 25 % Capital turnover 1.00 ROI % % 20% Residual income $ 492,000
! 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. Division A Division B Division C $ Sales revenue ? ? 11,000,000 $ $ Income Average investment ? 550,000 2,020,000 $ ? ? 2,540,000 Sales margin 20% ? 25% Capital turnover 2 ? ? ROI ? ? 30% $ Residual income ? ? 139,000 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. Division A Division B Division C Sales revenue $ Income $ 41,000,000 $ 9,020,000 1,750,000 Average investment $ 10,250,000 Sales margin 20% % 25 % Capital turnover 1.00 ROI % % 20% Residual income $ 492,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Vishnu
Transcribed Image Text:!
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.
Division A Division B Division C
$
Sales revenue
?
?
11,000,000
$
$
Income
Average investment
?
550,000
2,020,000
$
?
?
2,540,000
Sales margin
20%
?
25%
Capital turnover
2
?
?
ROI
?
?
30%
$
Residual income
?
?
139,000
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.
Division A
Division B
Division C
Sales revenue
$
Income
$ 41,000,000
$ 9,020,000
1,750,000
Average investment
$ 10,250,000
Sales margin
20%
%
25 %
Capital turnover
1.00
ROI
%
%
20%
Residual income
$
492,000
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