### Romano Corporation Divisional Performance Analysis**Overview:**Romano Corporation operates through three divisions and targets a 14% return on all investments. Below is the financial data for the divisions, along with specific calculations that need completion:**Objective:**Calculate the missing financial figures for each division. Ensure calculated values for "Margin", "Turnover", and "ROI" (Return on Investment) are rounded to two decimal places.**Financial Data:**| | Division X | Division Y | Division Z ||---|------------|------------|------------|| **Revenues** | $991,000 | ? | ? || **Operating Income** | $118,400 | ? | $75,500 || **Operating Assets** | $546,100 | ? | $366,500 || **Margin** | 11.95% | 16.00% | ? || **Turnover** | ? | 2.00 turns | 3.00 turns || **ROI** | 21.68% | ? | ? || **Residual Income** | ? | ? | $22,850 |**Key Formulas:**1. **Margin (%)** = $\frac{\text{Operating Income}}{\text{Revenues}} \times 100$2. **Turnover (turns)** = $\frac{\text{Revenues}}{\text{Operating Assets}}$3. **ROI (%)** = $\frac{\text{Operating Income}}{\text{Operating Assets}} \times 100$4. **Residual Income** = Operating Income - (Operating Assets $\times$ Required Rate of Return)**Graphical Representation and Legend:**The table provided contains various rows for financial metrics and columns for each division, labeled "Division X", "Division Y", and "Division Z". - **Revenues**: Income generated from normal business operations (sales, services, etc.).- **Operating Income**: Profit earned from core business operations.- **Operating Assets**: Assets used in the normal operations of the division.- **Margin**: The percentage of revenue that has turned into operating income.- **Turnover**: A measure of how efficiently the division uses its assets to generate revenue.- **ROI**: Indicator of the profitability relative to the division's operating assets.- **Residual Income**: Income after accounting for the required return on investment.**

Solution: Division X Division Y Division Z Revenues $991,000.00 $733,000.00 $1,128,214…

Romano Corporation has three operating divisions and requires a 14% return on all investments. Selected information is presented here: Required: Calculate the missing amounts for each division. (Do not round intermediate calculations. Round "Margin", "Turnover" and "ROI" to 2 decimal places.) Division X Division Y Division Z Revenues $ 991,000 Operating income $ 118,400 $ 75,500 Operating assets 546, 100 366,500 Margin 11.95 % 16.00 % % 1.81 turn(s) 21.68 % Turnover 2.00 turn(s) 3.00 turn(s) ROI % % Residual income 2$ 22,850

Romano Corporation has three operating divisions and requires a 14% return on all investments. Selected information is presented here: Required: Calculate the missing amounts for each division. (Do not round intermediate calculations. Round "Margin", "Turnover" and "ROI" to 2 decimal places.) Division X Division Y Division Z Revenues $ 991,000 Operating income $ 118,400 $ 75,500 Operating assets 546, 100 366,500 Margin 11.95 % 16.00 % % 1.81 turn(s) 21.68 % Turnover 2.00 turn(s) 3.00 turn(s) ROI % % Residual income 2$ 22,850

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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