(a)
Income from operations: Income statement reports revenues and expenses from business operations, and the result of those operations, before taxes, other revenues and expenses, is referred to as income from operations.
Profit margin: This ratio gauges the operating profitability by quantifying the amount of income earned from business operations from the sales generated.
Formula of profit margin:
Investment turnover: This ratio gauges the operating efficiency by quantifying the amount of sales generated from the assets invested.
Formula of investment turnover:
Formula of ROI according to Dupont formula:
To compute: Selling, general, and administrative expenses of each segment.
(b)
To compute: Property, plant, and equipment portion of each segment
(c)
To compute: Income from operations for CO and F Segments
(d)
To compute: Profit margin of each of the segments
(e)
Investment turnover of each of the segments
(f)
ROI of each of the segments using DuPont formula
(g)
To discuss: The variables that would impact the franchised Company HR in comparison to the non-franchised independent company.
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Chapter 23 Solutions
Financial & Managerial Accounting
- Answerarrow_forward??arrow_forwardSolomon Manufacturing Company began operations on January 1. During the year, it started and completed 1,790 units of product. The financial statements are prepared in accordance with GAAP. The company incurred the following costs: 1 Raw materials purchased and used 2 Wages of production workers $ 3,060 $ 3,590 3 Salaries of administrative and sales personnel $ 1,915 $ 6,417 $1,760 4 Depreciation on manufacturing equipment 5 Depreciation on administrative equipment Solomon sold 1,030 units of product. Required: a. Determine the total product cost for the year. b. Determine the total cost of the ending inventory. c. Determine the total cost of goods sold.arrow_forward
- A business had: • Assets on Dec 31, Year 1: $820,000 • Liabilities on Dec 31, Year 1: $310,000 • Owner investments in Year 2: $45,000 Dividends paid in Year 2: $25,000 • Assets on Dec 31, Year 2: $870,000 • Liabilities on Dec 31, Year 2: $290,000 What is net income for Year 2?arrow_forwardWHICH OF THE FOLLOWING IS AN EXAMPLE OF A LABOR COST STANDARD? A. $40 PER DIRECT LABOR HOUR B. 50 SQUARE FEET PER UNIT C. $0.95 PER SQUARE FOOT D. 0.5 DIRECT LABOR HOURS PER UNITarrow_forwardAlpine Tech Corporation has a marginal tax rate of 40% and an average tax rate of 25%. If the company earns $120,000 in taxable income, how much will it owe in taxes? a. $30,000 b. $35,000 c. $40,000 d. $48,000arrow_forward
- What is the effective rate of interest if the loan is discounted ? accountingarrow_forwardWhat amount of indirect cost would be assigned if services to a project required $40,000 ofarrow_forwardPlease given correct answer for Financial accounting question I need step by step explanationarrow_forward
