Shaq Company operates with three segments: Louisiana, Orlando, and Los Angeles. Data regarding these segments is as follows: Louisiana Segment Orlando Segment Los Angeles Segment Contribution to indirect expenses $328,500 $207,600 $155,500 Assets directly used & identified with segment $1,858,700 $1,410,000 $742,600 1. Calculate the return on investment for each segment. Rank them from highest to lowest. Round percent to 1 decimal place. Louisiana Segment Orlando Segment Los Angeles Segment Segment Net Income Investment base (assets) ROI (%) Rankings (1,2, or 3, where 1 is the best) 2. Assume the cost of capital is 14% for a segment. Calculate residual income for each segment. Rank them from highest to lowest. Round percent to 1 decimal place. Louisiana Segment Orlando Segment Los Angeles Segment Segment Net Income Investment base (assets) Cost of Capital (%) Minimum Income Residual Income Rankings (1,2, or 3, where 1 is the best)
Shaq Company operates with three segments: Louisiana, Orlando, and Los Angeles. Data regarding these segments is as follows: Louisiana Segment Orlando Segment Los Angeles Segment Contribution to indirect expenses $328,500 $207,600 $155,500 Assets directly used & identified with segment $1,858,700 $1,410,000 $742,600 1. Calculate the return on investment for each segment. Rank them from highest to lowest. Round percent to 1 decimal place. Louisiana Segment Orlando Segment Los Angeles Segment Segment Net Income Investment base (assets) ROI (%) Rankings (1,2, or 3, where 1 is the best) 2. Assume the cost of capital is 14% for a segment. Calculate residual income for each segment. Rank them from highest to lowest. Round percent to 1 decimal place. Louisiana Segment Orlando Segment Los Angeles Segment Segment Net Income Investment base (assets) Cost of Capital (%) Minimum Income Residual Income Rankings (1,2, or 3, where 1 is the best)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Shaq Company operates with three segments: Louisiana, Orlando, and Los Angeles.
Data regarding these segments is as follows:
return on investment for each segment. Rank them from highest to lowest. Round percent to 1 decimal place.
2. Assume the cost of capital is 14% for a segment. Calculate residual income for each segment. Rank them from highest to lowest. Round percent to 1 decimal place.
Data regarding these segments is as follows:
| Louisiana Segment |
Orlando Segment |
Los Angeles Segment |
|
|---|---|---|---|
| Contribution to indirect expenses | $328,500 | $207,600 | $155,500 |
| Assets directly used & identified with segment | $1,858,700 | $1,410,000 | $742,600 |
1. Calculate the
| Louisiana Segment |
Orlando Segment |
Los Angeles Segment |
|
|---|---|---|---|
| Segment Net Income | |||
| Investment base (assets) | |||
| ROI (%) | |||
| Rankings (1,2, or 3, where 1 is the best) |
2. Assume the cost of capital is 14% for a segment. Calculate residual income for each segment. Rank them from highest to lowest. Round percent to 1 decimal place.
| Louisiana Segment |
Orlando Segment |
Los Angeles Segment |
|
|---|---|---|---|
| Segment Net Income | |||
| Investment base (assets) | |||
| Cost of Capital (%) | |||
| Minimum Income | |||
| Residual Income | |||
| Rankings (1,2, or 3, where 1 is the best) |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education