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 ? $ 410,000 ? 30% 2 ? ? Division B $ 11,000,000 $ 2,080,000 $ 2,620,000 ? ? ? ? Division C ? ? ? 35% ? 30% $ 135,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places.
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 ? $ 410,000 ? 30% 2 ? ? Division B $ 11,000,000 $ 2,080,000 $ 2,620,000 ? ? ? ? Division C ? ? ? 35% ? 30% $ 135,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required information
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
Sales revenue
Income
Average investment
Sales margin
Capital turnover
ROI
Residual income
$
Division A
?
$ 410,000
Division A
1,710,000
Required:
The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested
capital is 8 percent.
Note: Round "Capital turnover" answers to 2 decimal places.
20 %
1.00
?
30%
2
?
?
%
Division B
$ 11,000,000
$ 2,080,000
$ 2,620,000
$
$
$
Division B
41,100,000
8,220,000
10,275,000
%
?
?
%
?
?
Division C
?
?
?
35%
?
30%
$ 135,000
$
Division C
25 %
20 %
495,000
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