Back mountain industries bmi has two divisions east and

Assignment Help Accounting Basics

Reference no: EM13485000

Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost-of-capital of 16.1%. Selected financial information (in thousands of dollars) for the first year of business follows:

		East		West
Sales revenue	$	1,550	$	6,100
Income		310		500
Investment (beginning of year)		2,550		3,550
Current liabilities (beginning of year)		310		310
R&D expenditures (note a)		775		510

^a R&D is assumed to benefit two periods. All R&D is spent at the beginning of the year.

Required:

Evaluate the performance of the two divisions assuming BMI uses return on investment (ROI).

	East (%)	West (%)
ROI

Reference no: EM13485000

Questions Cloud

Kaehler enterprises earns 5 on an investment that pays : kaehler enterprises earns 5 on an investment that pays back 80000 at the end of each of the next 6 years. what is the

Financial ratio analysis is conducted by managers equity : financial ratio analysis is conducted by managers equity investors long-term creditors and short-term creditors. what

Explain why the quick ratio or acid-test ratio is a better : explain why the quick ratio or acid-test ratio is a better measure of a firms liquidity than the current

I his home-run-hitting ability is expected to grow by 12 : joe mauer a catcher for the minnesota twins is expected to hit 15 home runs in 2012. if his home-run-hitting ability

Back mountain industries bmi has two divisions east and : back mountain industries bmi has two divisions east and west. bmi has a cost-of-capital of 16.1. selected financial

Braam fire prevention corp has a profit margin of 870 : braam fire prevention corp. has a profit margin of 8.70 percent. total asset turnover of 1.45 and roe of 18.67 percent.

Days sales in receivables a company has net income of : days sales in receivables a company has net income of 195000 a profit margin of 9.40 percent and an accounts receivable

How much must be contributed each year by jesper parnevik : jesper parnevik borrowed 70000 on march 1 2006. this amount plus accrued interest at 12 compounded semiannually is to

Analyze the account balances for account receivable : analyze the account balances for account receivable inentory and shortcurrent long-term deb. describe any observations

User Account

All Pages