Reference no: EM131793825
Question - The vice president of operations of14 computers inc. is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows:
Personal Computing Division Business Computing Division
Sales $800,000 $1,200,000
COGS 460,000 780,000
Operating Expenses 180,000 156,000
Invested assets 500,000 2,000,000
INSTRUCTIONS
1. Prepare condensed divisional income statements for the year ended December 31, 2008, assuming that there were no service department charges.
2. Using DuPont formula for rate of return on investment, determine the profit margin, investment turnover, and rate of return on investment for each division.
3. If management's minimum acceptable rate of return is 15% determine the residual income for each division.
4. Discuss the evaluation of the two divisions, using the performance measures determined in parts (1), (2), and (3).
|
Prepare a tabular analysis of the september transactions
: Paid $2,900 cash on accounts payable. Prepare a tabular analysis of the September transactions beginning with August 31 balances
|
|
What is the net cash provided by investing activities
: In Gentry Company, land decreased £360,000 because of a cash sale for £360,000. What is the net cash provided by investing activities.
|
|
What is johnson and johnsons free cash flow
: What is Johnson & Johnsons free cash flow. From the information provided, comment on Johnson & Johnson's financial flexibility
|
|
What would you say to massie regarding her listed deductions
: What would you say to Massie regarding her listed deductions? How much of the deduction is allowed for charitable contributions?
|
|
Prepare condensed divisional income statements
: Prepare condensed divisional income statements for the year ended December 31, 2008, assuming that there were no service department charges
|
|
What is the total rate of return on the bond
: Consider a bond paying a coupon rate of 8.50% per year semiannually when the market interest rate is only 3.4% per half-year.
|
|
What are positive and negative example of social interaction
: What are the positive and negative examples of social interaction in this case? Which of the negative examples is most serious and why?
|
|
Prepare the journal entries to record the transactions
: The land and building cost $60,000 and $280,000, respectively, when they were acquired. Prepare the journal entries to record the transactions on April
|
|
Greatest arbitrage-free lower bound for the call
: Consider a European-style put on a stock with price $49; the call has a strike price of $50, time-to-expiration of 300 days.
|