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 –

$\text{Segment Return on Total Assets}=\frac{\text{Net Income}}{\text{Average Total assets}}$

Now, the average total assets are calculated as –

$\text{Average total assets}=\frac{\text{Beginning Total assets}+\text{Ending total assets}}{2}$

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