Retall Sales and Wholesale Sales are the only divislons of Terra Company. The following Information was gathered for the two divislons for the current year:14WholesaleRetal DIvisionDIVisionOperating IncomeOperating assets$ 6,400,000$36,400,000$ 2,900,000$16,400,000The company has $1,400,000 In operating assets that are not assigned to elther of the dvislons and $240,000 In corporate expenses that are not reflected In the Information above. Based on this information, what is the ROI for the company as a whole?Multiple Choice17.61%35.27%16.72%The answer cannot be determined using the information provided.< Prev14 of 251:09 PM

Ans. The Return on Investment (ROI) is calculated by dividing the net income by the operating…

Answered: Retal Sales and Wholesale Sales are the…

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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Thomas Railroad Company organizes its three divisions, the North (N), South (S), and West (W) regions, as profit centers. The chief executive officer (CEO) evaluates divisional performance, using operating income as a percent of revenues. Th following quarterly income and expense accounts were provided from the trial balance as of December 31: $1,044,000 1,245,600 2,188,700 661,600 741,300 1,323,600 555,000 214,200 158,800 350,600 Revenues-N Region Revenues-S Region Revenues-W Region Operating Expenses-N Region Operating Expenses-S Region Operating Expenses-W Region Corporate Expenses-Dispatching Corporate Expenses-Equipment Management Corporate Expenses-Treasurer's General Corporate Officers' Salaries The company operates three support departments: the Dispatching Department, the Equipment Management Department, and the Treasurer's Department. The Dispatching Department manages the scheduling and releasing of completed trains. The Equipment Management Department manages the railroad…
Corrections to Service Department Charges for a Service Company Wild Sun Airlines Inc. has two divisions organized as profit centers, the Passenger Division and the Cargo Division. The following divisional income statements were prepared: Wild Sun Airlines Inc. Divisional Income Statements For the Year Ended December 31, 20Y9 Passenger Division Cargo Division Revenues $2,314,000 $2,314,000 Operating expenses 1,873,300 2,082,600 Income from operations before $440,700 $231,400 service department charges Less service department charges: Training $108,800 $108,800 Flight scheduling 80,850 80,850 Reservations 108,000 297,650 108,000 297,650 Income from operations $143,050 $(66,250) The service department charge rate for the service department costs was based on revenues. Because the revenues of the two divisions were the same, the service department charges to each division were also the same. The following additional information is available: Passenger Cargo Total Division Division Number…
Divisional Income Statements with Support Department Allocations Horton Technology has two divisions, Consumer and Commercial, and two corporate support departments, Tech Services and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows: Tech Services Department $905,200 Purchasing Department 380,000 Other corporate administrative expenses 553,000 Total expense $1,838,200 The other corporate administrative expenses include officers’ salaries and other expenses required by the corporation. The Tech Services Department allocates costs to the divisions based on the number of computers in the department, and the Purchasing Department allocates costs to the divisions based on the number of purchase orders for each department. The services used by the two divisions are as follows: Tech Services Purchasing Consumer Division 450 computers 5,300 purchase orders Commercial Division 280 9,900 Total 730 computers 15,200 purchase…
Divisional Income Statements The following data were summarized from the accounting records for Ruiz Industries Inc. for the year ended November 30, 20Y8: Cost of goods sold: Support department allocations: Commercial Division $459,310 Commercial Division $62,630 Residential Division 214,350 Residential Division 37,130 Administrative expenses: Sales: Commercial Division $83,510 Commercial Division $695,920 Residential Division 76,550 Residential Division 382,760 Prepare divisional income statements for Ruiz Industries Inc. Ruiz Industries Inc. Divisional Income Statements For the Year Ended November 30, 20Y8 Commercial Division Residential Division %24
Divisional Income Statements The following data were summarized from the accounting records for Jersey Coast Construction Company for the year ended June 30, 20Y8: Cost of goods sold: Service department charges: Commercial Division $348,510 Commercial Division $47,520 Residential Division 171,510 Residential Division 29,710 Administrative expenses: Net sales: Commercial Division $63,370 Commercial Division $528,050 Residential Division 61,250 Residential Division 306,270 Prepare divisional income statements for Jersey Coast Construction Company. Jersey Coast Construction Company Divisional Income Statements For the Year Ended June 30, 20Y8 Commercial Division Residential Division Income from operations before service department charges $fill in the blank 2 $fill in the blank 3 Cost of goods sold fill in the blank 5 fill in the blank 6 Gross profit $fill in the blank 8 $fill in the blank 9 Administrative…
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Divisional Income Statements The following data were summarized from the accounting records for Ruiz Industries Inc. for the year ended November 30, 20Y8: Cost of goods sold: Support department allocations: Commercial Division $420,760 Commercial Division $57,380 Residential Division 203,490 Residential Division 35,250 Administrative expenses: Sales: Commercial Division $76,500 Commercial Division $637,510 Residential Division 72,680 Residential Division 363,380 Prepare divisional income statements for Ruiz Industries Inc. Ruiz Industries Inc. Divisional Income Statements For the Year Ended November 30, 20Y8 Commercial Division Residential Division $ $
1 ) Retail Division = ( 1125 / 2500 ) x 264000 = 118800 commercial division = ( 1375 / 2500 ) x 264000 = $ 145200 Using the data for Lee Company above along with the following data, determine the divisional income from operations for the Division and the Commercial Division:
Babak Industries is a division of a major corporation. Last year the division had total sales of $20.460,000, net operating income of $1.886,760, and average operating assets of $6,900,000. The division's turnover is closest to: Multiple Cholce 2.97 0.27 2.19 10.84

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