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. Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Division A ? Division B Division C $ 12,000,000 ? $ 430,000 $ 2,150,000 ? ? $ 2,560,000 ? 20% ? 25% 3 ? ? ? ? ? 30% ? $ 131,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested apital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue $ 40,700,000 Income $ 1,840,000 $ 8,140,000 Average investment $ 10,175,000 Sales margin 20 % % 25 % Capital turnover ROI Residual income 1.00 % % 20 % $ 489,000
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. Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Division A ? Division B Division C $ 12,000,000 ? $ 430,000 $ 2,150,000 ? ? $ 2,560,000 ? 20% ? 25% 3 ? ? ? ? ? 30% ? $ 131,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested apital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue $ 40,700,000 Income $ 1,840,000 $ 8,140,000 Average investment $ 10,175,000 Sales margin 20 % % 25 % Capital turnover ROI Residual income 1.00 % % 20 % $ 489,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.
Sales revenue
Income
Average investment
Sales margin
Capital turnover
ROI
Residual income
Division A
?
Division B
Division C
$ 12,000,000
?
$ 430,000
$ 2,150,000
?
?
$ 2,560,000
?
20%
?
25%
3
?
?
?
?
?
30%
?
$ 131,000
Required:
The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested
apital is 8 percent.
Note: Round "Capital turnover" answers to 2 decimal places.
Division A
Division B
Division C
Sales revenue
$
40,700,000
Income
$ 1,840,000
$
8,140,000
Average investment
$
10,175,000
Sales margin
20 %
%
25 %
Capital turnover
ROI
Residual income
1.00
%
%
20 %
$
489,000
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