Fundamental Accounting Principles
Fundamental Accounting Principles
23rd Edition
ISBN: 9781259536359
Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Chapter 7, Problem 11E
To determine

Concept Introduction:

Segment return on assets can be defined as the return that a segment earns. It is the ratio that measures a segment’s operating income from the average total assets invested.

Segment Return on total assets can be calculated as –

Segment Return on Total Assets= Net IncomeAverage Total assets

Now, the average total assets are calculated as –

Average total assets=Beginning Total assets+Ending total assets2

To calculate:

Segment return on total assets for Specialty –

1. Skiing Group

2. Skating Group

3. Specialty Footwear

4. Other Specialty

Segment return on total assets for General Merchandise –

1. South America

2. United States

3. Europe

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