While reviewing last year's performance outcomes for comparison to this year, Linda finds several pieces are missing. Apparently, a virus attacked select components of the system's memory, and the back-up information was too difficult to extract from the file. She knows that all three divisions use the corporate tax rate (26%), minimum rate of return (10%), and WACC (8%) to determine their respective RI and EVA metrics. The following information reflects the components that Linda could identify for each of the three divisions in the company. Sales Operating income After-tax operating income Operating assets Total assets Current liabilities ROI RI EVA Profit margin Asset turnover Industrial Technology $125,000 $9,000 A $80,000 $100,000 $5,000 8 C D E L $16,800 H $197.000 J 10% K $632 2 Service M N $15,318 0 $10,500 Q $10,700 $6,558 13.8% R

While reviewing last year's performance outcomes for comparison to this year, Linda finds several pieces are missing. Apparently, a virus attacked select components of the system's memory, and the back-up information was too difficult to extract from the file. She knows that all three divisions use the corporate tax rate (26%), minimum rate of return (10%), and WACC (8%) to determine their respective RI and EVA metrics. The following information reflects the components that Linda could identify for each of the three divisions in the company. Sales Operating income After-tax operating income Operating assets Total assets Current liabilities ROI RI EVA Profit margin Asset turnover Industrial Technology $125,000 $9,000 A $80,000 $100,000 $5,000 8 C D E L $16,800 H $197.000 J 10% K $632 2 Service M N $15,318 0 $10,500 Q $10,700 $6,558 13.8% R

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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