User Account

All Pages

Determine the profit margin

Assignment Help Accounting Basics
Reference no: EM13259722

The condensed income statement for the European Division of Cougar Motors Inc. is as follows (assuming no service department charges):

sales 875,000
cost of goodssold 400,000
grossprofit 475,000
administrative expenses 282,500
income from operations 192,500

The manager of the European Division is considering ways toincrease the rate of returns on investment.

A. Using the Dupont formula for rate of return on investment, determine the profit margin, investment turnover, and rate ofreturn on investment of the European Division, assuming that1,750,000 of assets have been invested in the europeanDivision.

B. If Expenses could be reduced by 52,500 without descreasing sales, what would be the impact on the profit margin, investmentturnover, and rate of return on investment for the European Division

Reference no: EM13259722

Questions Cloud

Question-gomez service company : Gomez Service Company has received $7,500 in cash for services rendered. What affect does this transaction have on the accounting equation?
Determine the z0 of the line and the phase velocity : The input impedance of a 31cm long lossless transmission line of unknown characteristic impedance was measured at 1 MHz. With the line terminated in a short circuit, the measurement yielded an input impedance equivalent
Calculate the drift speed of the electrons in the wire : An aluminum wire having a cross-sectional area equal to 2.70 10-6 m2 carries a current of 6.50 A. The density of aluminum is 2.70 g/cm3. calculate the drift speed of the electrons in the wire
Knowledge of accounting concepts-terminology : Why is a knowledge of accounting concepts and terminology useful to anyone in a business activity?
Determine the profit margin : Using the Dupont formula for rate of return on investment, determine the profit margin, investment turnover, and rate ofreturn on investment of the European Division, assuming that1,750,000 of assets have been invested in the europeanDivision.
Which transistor bias circuit provide good q-point stability : Which transistor bias circuit arrangement provides good Q-point stability, but requires both positive and negative supply voltages.
Identify client safety risks : One of the Behavioral Health NPSG's is to Identify client safety risks- quality documentation from the physician would have to indicate this, how else would anyone in the facility know that the patient maybe suicidal or a danger to himself or othe..
Find the distance between the slits and the screen : A double-slit experiment using light of wavelength 580.nm produces an interference pattern on a screen. The slit separation is 1.39?10?2mm. find the distance between the slits and the screen
Advances from customers : Which one of the following should not (would not) be used instead of "Advances from Customers?"?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determining time and material pricing method

With the time and material pricing method, the hourly time charge is typically set equal to:

  Cost of goods sold and gross profit rate

At the beginning of the year, Downtown Athletic had an inventory of $200,000. During the year, the company purchased goods costing $800,000. If Downtown Athletic reported ending inventory of $300,000 and sales of $1,050,000, their cost of goods so..

  Newman engineering liabilities include the following

$10 million of 9% bonds were issued for $10 million on May 31, 1988. The bonds mature on May 31, 2022, but bondholders have the option of calling (demanding payment on) the bonds on May 31, 2012. However, the option to call is not expected to be e..

  Activity-based budgeting

Activity-based budgeting includes all the following steps EXCEPT:

  Amount torrie repay at the end of third year

Torrie Company borrowed $50,000 on January 2, 2007. This amount plus accrued interest of 5% compounded annually will be repaid at the end of 3 years. What amount will Torrie repay at the end of the third year?

  Treatment of preacquisition earnings

Which of the following is correct about the treatment of preacquisition earnings on consolidated financial statements?

  What amount of interest income

What amount of interest income should be included in Moor's 2011 income statement (the second year of the contract)?

  Implications of the changes in the aging schedule

Determine the total estimated uncollectibles. Prepare the adjusting entry at March 31, 2007, to record bad debts expense. Discuss the implications of the changes in the aging schedule from 2006 to 2007

  Compute the equivalent units of production for materials

Compute the following and show the computations that support your answers.  Equivalent units of production for materials and conversion costs in the Cutting Department for the month of November. Cost per equivalent unit for materials and conversion..

  Fundamental factors affecting the cost of money

which is the rate users pay to providers. For debt, we call this price the interest rate. For equity, we call this price the cost of equity. Discuss the four most fundamental factors affecting the cost of money.

  Problem regarding budgeted net income

The Adams Company, a merchandising firm, has budgeted its activity for November according to the following information:

  Computing the tax liability

In 2010, Athena reported $35000 of taxable income. Of this, $30000 came from her work at the local library and the remaining $5000 was from capital gains to be taxed at preferential rates. Compute her tax liability for 2010 as a single taxpayer.

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd