Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 10 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue $ 7,500,000 $ 40,400,000 Income $ 1,650,000 $ 8,080,000 $ 891,000 Average investment $ 10,100,000 $ 4,050,000 Sales margin 22 % 20% 25 % Capital turnover 1.00 4.00 ROI Residual income % 80 % 22 % $ 7,070,000 $ 486,000

Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 10 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue $ 7,500,000 $ 40,400,000 Income $ 1,650,000 $ 8,080,000 $ 891,000 Average investment $ 10,100,000 $ 4,050,000 Sales margin 22 % 20% 25 % Capital turnover 1.00 4.00 ROI Residual income % 80 % 22 % $ 7,070,000 $ 486,000

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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Bottlebrush Company has operating income of $150,720, invested assets of $314,000, and sales of $1,004,800. Use the DuPont formula to compute the return on investment, and show (a) the profit margin, (b) the investment turnover, and (c) the return on investment. Round answers to one decimal place.
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Book rences Required: a. Firm D has net income of $64,296, sales of $1,368,000, and average total assets of $760,000. Calculate the firm's margin, turnover, and ROI. b. Firm E has net income of $120,218, sales of $1,939,000, and ROI of 8.68%. Calculate the firm's turnover and average total assets. c. Firm F has ROI of 12.40%, average total assets of $1,540,000, and turnover of 0.8. Calculate the firm's sales, margin, and net income. Complete this question by entering your answers in the tabs below. Required A Required B Required C Firm D has net income of $64,296, sales of $1,368,000, and average total assets of $760,000. Calculate the firm's margin, turnover, and ROI. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Margin Turnover ROI % % Required B >
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