A company's two divisions report the Information below.ElectronicsSporting GoodsSales$ 81,000$ 40,000Income5,670Average assets40,5004,10025,000Enter answers in the tabs below.Required 1 Required 2 Required 3Required 2Calculate investment turnover for each division.DivisionElectronicsSporting GoodsInvestment turnoverNumerator:Denominator:Investment turnover< Required 1Required 3 > A company's two divisions report the information below.SalesElectronics$ 81,000Sporting Goods$40,000Income5,6704,100Average assets40,50025,000Enter answers in the tabs below.Required 1Required 2 Required 3Calculate profit margin for each division.DivisionElectronicsSporting GoodsProfit marginNumerator:Denominator:Profit marginRequired 2 >

Step 1: Calculation of profit margin.Profit margin percentage = Income / SalesElectronics = $5,670 /…

Answered: A company's two divisions report the…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 7SPB: INCOME STATEMENT WITH DEPART MENTAL GROSS PROFIT AND OPERATING INCOME Bacon and Hand Distributors...

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INCOME STATEMENT WITH DEPART MENTAL GROSS PROFIT AND OPERATING INCOME Bacon and Hand Distributors has divided its business into two departments: retail sales and wholesale sales. The following information is provided for the year ended December 31, 20--: REQUIRED 1. Prepare an income statement showing departmental gross profit and total operating income. 2. Calculate departmental gross profit percentages.
INCOME STATEMENT WITH DEPART MENTAL GROSS PROFIT AND OPERATING INCOME Thomas and Hill Distributors has divided its business into two departments: commercial sales and industrial sales. The following information is provided for the year ended December 31, 20--: REQUIRED 1. Prepare an income statement showing departmental gross profit and total operating income. 2. Calculate departmental gross profit percentages.
A company's two divisions report the information below. Sales Income Average assets Electronics $ 81,000 5,670 40,500 Sporting Goods $ 40,000 4,100 25,000 Enter answers in the tabs below. Required 1 Required 2 Required 3 Calculate return on investment for each division. Division Electronics Sporting Goods Return on Investment Numerator Denominator: = Return on Investment
Homework 1 In an effort to resolve the problem, the company wants to prepare an income statement segmented by division. Accordingly, the Accounting Department provided the following information: Sales Variable expenses as a percentage of sales. Traceable fixed expenses Required 1 Required 2A Required 28. Complete this question by entering your answers in the tabs below. Net operating income will East $ 392,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department believes increasing the West Division's monthly advertising by $28,000 will increase that division's sales by 16%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 2-b. Would you recommend the increased advertising? increase 52% by $ 299,000
Using the data below for Ace Guitar Company: Region A Region B Sales $753,500 $616,500 Cost of goods sold 286,300 234,300 Selling expenses 180,800 148,000 Service department expenses Purchasing $230,200 Payroll accounting 153,400 Allocate service department expenses proportionally to the sales of each region, determine the divisional income from operations for the Regions A and B. For interim calculations, round the percentages to one decimal place. Region A Region B
Please send answer in chart format Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Sales Income AverageInvested Assets Electronics $ 39,840,000 $ 2,988,000 $ 16,600,000 Sporting goods 25,200,000 2,142,000 12,600,000 Compute profit margin and investment turnover for each department. Which department generates the most net income per dollar of sales? Which department is most efficient at generating sales from average invested assets?
Calculator Data for Divisions A, B, C, D, and E are as follows: a. Determine the missing items. Round rate of return on investment, profit margin, and investment turnover answers to one decimal place when required. Div. Sales Income from Operations Inv. Assets Rate of Return on Inv. Profit Margin Invest. Turnover A $ $35,000 $200,000 % % 1.6 B $455,000 $ $284,375 16% % C $525,000 $73,500 $ % % 1.2 D $800,000 $ $ % 13.0% 2.5 E $ $ $250,000 % 16.0% 2.0 b. Which division is most profitable in terms of income from operations? c. Which division is most profitable in terms of rate of return on investment?
Using the following data for Ace Guitar Company: A Region Sales Cost of goods sold Selling expenses Support department expenses: Purchasing Payroll accounting $781,000 296,800 187,400 A Region Operating Income B Region Operating Income B Region $639,000 242,800 153,400 $238,600 159,000 Allocate support department expenses proportional to the sales of each region. Determine the divisional operating income for the A and B regions.
Problem 2 Water Paints Inc. has two major Divisions and has collected the following information about them. Net Sales revenue Operating income Average Total Assets Stores $3,989,000 $480,000 $1,250,000 Consumer 1,425,000 185,000 1,500,000 Required: Calculate each Division’s ROI rounding all of your answers to three decimal places. Calculate each Division’s profit margin ratio. What do your results mean? Calculate each Division’s asset turnover ratio. Calculate each Division’s residual income (RI) the target rate of return is 10%
Problem 2 Water Paints Inc. has two major Divisions and has collected the following information about them. Net Sales revenue Operating income Average Total Assets Stores $3,989,000 $480,000 $1,250,000 Consumer 1,425,000 185,000 1,500,000 Required: Calculate each Division’s ROI rounding all of your answers to three decimal places. Calculate each Division’s profit margin ratio. What do your results mean? Calculate each Division’s asset turnover ratio. Calculate each Division’s residual income (RI)
Prepare a comparative income statement for 20X2 and 20X1 using vertical analysis, and| Problem 2 VERTICAL ANALYSIS. The Lyons Corporation reported the following income stateme data: 20X2 20X1 Net sales $400.000 $250.000 Cost of goods sold $280.000 S160.000 Operating expenses S75.000 $56.000 Requirement: Prepare a comparative income statement for 20X2 and 20X1 using vertical analysis, ana evaluate the results.
Use the following information to compute profit margin for each separate company a through e. (Round your answers to 1 decimal place.) Company Net Income Net Sales Profit Margin (%) 24 5,640 $ 47,000 a. 92,026 418,300 C. 96.444 267,900 di 68,738 1,527,500 77,959 455,900 e Which of the five companies is the most profitable according to the profit margin ratio? O Company a O Company b O Company c O Company d O Companye

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