User Account

All Pages

Compute the return on investment for each division

Assignment Help Financial Accounting
Reference no: EM13513003

Consider the following sales and operating data for the three divisions of a conglomerate:

Division A

Division C

Division C

Sales

$140,000

$180,000

$250,000

Operating income

$ 5,000

$ 6,300

$ 14,400

Operating assets

$ 20,000

$ 35,000

$ 90,000

Minimum required rate of return

10%

19%

20%

(a) Compute the return on investment (ROI) for each division.

(b) Assume that each division is provided with an investment opportunity that could produce 20 percent return on investment. Which divisions would accept or reject it?

 

Reference no: EM13513003

Questions Cloud

What processes and structures did the belgians create : What processes and structures did the Belgians create in order to control the Congo? What are the commonalities between these and the institutions and relations established by the Spanish in South America as described in Eduardo Galeano's "Open Veins..
Where would the various costs be assigned : In an organization that does not use responsibility accounting, where would the various costs be assigned? What effect might this have on future printing orders from the marketing department?
Compute the molarity of a solution made by dissolving : Calculate the molarity of a solution made by dissolving 0.140 mol Na2SO4 in enough water to form exactly 800mL of solution.
How much kinetic energy does negatively charged object gain : A 2 ?C negative charge is attracted to a large, well-anchored, positive charge. How much kinetic energy does the negatively charged object gain
Compute the return on investment for each division : Assume that each division is provided with an investment opportunity that could produce 20 percent return on investment. Which divisions would accept or reject it?
Culminated in the theory of cultural materialism : A very influential anthropologist, Marvin Harris, focused his research on trying to understand why societies responded to issues the way they did. His work culminated in the theory of cultural materialism,
Explain the reaction of the appropriate strong acid : Write a balanced chemical equation showing the formation of the salt, Na3PO4, from the reaction of the appropriate strong acid and strong base, and name each compound in the equation.
Find the force on an electron passing between the plates : The metal plates of a TV tube are parallel and 12 mm apart. The potential difference between them is 12 kV. Find the force on an electron passing between the plates
Draw a graph of the system : Draw a graph of the system and indicate the feasible region clearly - Critically reflect on the use of Excel to provide a solution to this problem detailing any issues in either formulating the problem or determining the solution.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Create the entry in the investment trust fund

Create the entry in the Investment Trust Fund to record the distribution of the interest earned on pooled investments, assuming that the interest will be reinvested by the town and school district.

  Construct from the data and prepare t accounts

Tom and Jerry equally contributed US$ 1,000,000 as their share of capital in the business on 1/1/2012. They decided to keep the capital in the Company's bank account.

  How much net income should be distributed to emerson

Emerson and Dakota had $25,000 and $140,000 respectively in their January 1 capital balances. Net income for the year was $220,000. How much net income should be distributed to Emerson?

  What effect will collection of cash from receivable

The receivable was collected from the customer on October 8. What effect will the collection of cash from the receivable have on the company's financial statements?

  Purpose a production budget for february

Purpose a production budget for February, March, and April. and a forecast of the units and cost of raw material that may be required for February, March, and April.

  Prepare general journal entries for the transactions

Prepare general journal entries for the transactions - which had a cost of $5,500 and accumulated depreciation of $5,000, was traded in for a new motor (#23) with a fair market value of $6,500.

  Which of the following items are accounting contributions

which of the following items are accounting contributions to the managerial decision-making process?i. assign

  Problem 1financial accounting standards board fasb and

problem 1financial accounting standards board fasb and international accounting standards board iasb have adopted the

  What is its charitable contribution deduction

A clothing manufacturing corporation donates last year’s inventory to the Red Cross for use in its disaster relief efforts. The clothes have a fair market value of $200,000 and a basis to the corporation of $75,000. What is its charitable contrib..

  Analyze weaknesses and financial strengths of the company

Analyzing the weaknesses and financial strengths of the company

  Determine the eliminating entries necessary for the 2009

Cartwright, Inc. has $1,000,000 of 10% bonds outstanding on December 31, 20X8. On January 1, 20X9, Adam Corp., an 80%-owned subsidiary of Cartwright, Inc., purchases a $250,000 part of Cartwright, Inc.'s outstanding bonds in the market for $245,00..

  Prepare necessary journal entriesprepare the necessary

prepare necessary journal entriesprepare the necessary general journal entries for the month of october for the

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