Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Problem - Divisional income statements and rate of return on investment analysis - Earthy Grains Food Company is a diversified food company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June 30, 2012, are as follows:
Cereal Division
Snack Cake Division
Retail Bakeries Division
Sales
$4,950,000
$5,400,000
$4,896,000
Cost of goods sold
3,725,000
3,800,000
3,400,000
Operating expenses
433,000
844,000
516,800
Invested assets
5,500,000
6,750,000
4,080,000
The management of Earthy Grains Food Company is evaluating each division as a basis for planning a future expansion of operations.
Instructions -
1. Prepare condensed divisional income statements for the three divisions, assuming that there were no service department charges.
2. Using the DuPont formula for rate of return on investment, compute the profit margin, investment turnover, and rate of return on investment for each division.
3. If available funds permit the expansion of operations of only one division, which of the divisions would you recommend for expansion, based on parts (1) and (2)? Explain.
What book-tax difference associated with its goodwill should RC report in year 1? Is it favorable or unfavorable? Is it permanent or temporary
The fixed costs associated with the manufacture and sales of this product are $480,000 per year. What is the break-even number of Speedsters
What were the main issues presented? How do you think they would affect the economy, social and employment situation in the near future?
The salvage value will remain the same. Record the depreciation journal entry for the end of the second year
Prepare a reconciliation of Tyrone's bank account as of April 30. Show both a corrected balance per bank and a corrected balance per books
Assume that management has established a 12% minimum acceptable rate of return for invested assets. Determine the residual income for each division
What is the total variable cost incurred for Job 1(assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)?
Explain the difference between allocating manufacturing overhead using traditional cost allocation and activity-based costing allocations?
(A) Prepare an income statement and a retained earnings statement for the month of June and a balance sheet at June 30, 2015.
He also has a part-time job and earns $8,500 in wages subject to FICA taxes. Calculate Stew's self-employment tax for 2013 using Schedule SE
How would this error affect the equality of the accounting equatio
Pam owns a sole proprietorship and Kevin is the sole shareholder of a C (regular) corporation. Each business sustained a $16,000 operating loss and a $2,500 capital loss for the year. Evaluate how these losses will affect the taxable income of the..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd