ZuoTi.Pro
Question

The Global Products Corporation has three subsidiaries Heavy Medical Supplies Machinery Electronics Sales Net income (after taxes) Assets $ 20,530,000 $ 5,300,000 $4,890,000 407,000 3,820,000 2,010,000 19,450,000 505,000 8,950,000 a-1. What is the return on sales for each subsidiary? (Input your answers as a percent rounded to 2 decimal places.) Return on Sales Medical Supplies Heavy Machinery Electronics a-2. Which subsidiary has the lowest return on sales? Medical Supplies Electronics Heavy Machinery b-1. What is the return on assets for each subsidiary? (Input your answers as a percent rounded to 2 decimal places.) Return on Assets Medical Supplies Heavy Machinery Electronicsb-2. Which subsidiary has the highest return on assets? Electronics Heavy Machinery Medical Supplies c. Compute the return on assets for the entire corporation. (Input your answer as a percent rounded to 2 decimal places.) Return on assets d. If the $8,950,000 investment in the heavy machinery division is sold off and redeployed in the medical supplies subsidiary at the same rate of return on assets currently achieved in the medical supplies division, what will be the new return on assets for the entire corporation? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) New return on assets

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Return on sales = Net income (after tax) / sales*100

Return on assets = Net income (after tax) / Assets*100

To calculate the return on assets of entire corporation, we need to use the below formula:

Return on assets (entire corporation) = Total net income(after tax) of entire corporation / Total Assets*100

Question a-1 sales of each subsidia Return on sales = Net income (after tax)/Sales*100 Return on sales Medical supplies Heavy Machinery Electronics Calculation (2,010,000/20,530,000) 100 (505,000/5,300,000) 100 (407,000/4,890,000) 100 9.79% 9.53% 8.32% stio Electronics has the lowest return on the sales Question b-1 ach subsidi Return on sales Net income (after tax Assets 100 Return on sales Medical supplies Heavy Machinery Electronics Calculation (2,010,000/19,450,000) 100 (505,000/8,950,000)*100 (407,000/3,820,000) 100 10.33% 5.64% 10.65% stio Electronics has the highest return on the assets. Question c Total net income (after tax) 2,010,000505,000407,000 $2,922,000 Total assets 19,450,0008,950,0003,820,000 $32,220,000 Return on asset of the entire corporation Total Net income(after tax)/Total assets 100 Return on asset of the entire corporation (2,922,000/32,220,000) 100 Return on asset of the entire corporation-9.07% Question d If the investment in heavy machinery is sold off and invested in the Medical supplies, then additional net income in Medical supplies will be (2,010,000/19,450,000) 8,950,000 $924,910 Total income of the entire corporation 2,010,000924,910 407,000 Total investment in assets remains same Return on asset of the entire corporation (3,341,910/32,220,000) 100 Return on asset of the entire corporation-10.37% $3,341,910

0 0
Add a comment
Know the answer?
Add Answer to:
The Global Products Corporation has three subsidiaries Heavy Medical Supplies Machinery Electronics Sales Net income (after...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Save 5 Cable Corporation Net Income Sales Total assets Total debt Stockholders' equity MultiMedia ine $...

    Save 5 Cable Corporation Net Income Sales Total assets Total debt Stockholders' equity MultiMedia ine $ 139,000 2,120,000 925,000 473,000 447.000 314,000 468,000 144.000 274,000 16.66 point eBook 6-1. Compute return on stockholders' equity for both firms. (Input your answers as a percent rounded to 2 decimal places.) Print References Cable Corporation Mus Media, Inc Return on Stockholders Equity 11 201 3110 --2. Which firm has the higher return? Cable Corporation • Multi Media Inc b. Compute the following additional...

  • 8. 2.77 points Assume the following data for Cable Corporation and Multi-Media Inc. Net income Sales...

    8. 2.77 points Assume the following data for Cable Corporation and Multi-Media Inc. Net income Sales Cable Corporation $ 30,700 336,000 485.000 229,000 256.000 Multi-Media Inc. $ 115.000 2,370,000 919.000 465.000 454,000 Total debt Stockholders' equity a-1. Compute return on stockholders' equity for both firms. (Input your answers as a percent rounded to 2 decimal places.) Return on Stockholders Equity Cable Corporation Multi-Media, Inc. a-2. Which firm has the higher return? Cable Corporation Multi-Media Inc. b. Compute the following additional...

  • Assume the following data for Cable Corporation and Multi-Media Inc Cable Multi-Media Inc. Corporation Net income...

    Assume the following data for Cable Corporation and Multi-Media Inc Cable Multi-Media Inc. Corporation Net income Sales Total assets Total debt Stockholders' equity $ 34,400 $ 128,000 2,700,000 970,000 468,000 502,000 364,000 448,000 237,000 211,000 a-1. Compute return on stockholders' equity for both firms. (Input your answers as a percent rounded to 2 decimal places.) Return on Stockholders Equity Cable Corporation Multi-Media, Inc. a-2. Which firm has the higher return? Cable Corporation Multi-Media Inc b. Compute the following additional ratios...

  • Omni Technology Holding Company has the following three affiliates: Software Personal Computers Foreign Operations Sales $...

    Omni Technology Holding Company has the following three affiliates: Software Personal Computers Foreign Operations Sales $ 40,990,000 $ 60,000,000 $ 100,970,000 Net income (after taxes) 2,064,000 2,690,000 8,970,000 Assets 5,310,000 25,780,000 60,340,000 Stockholders' equity 4,940,000 10,190,000 50,850,000 a-1. Compute the return on sales. (Input your answers as a percent rounded to 2 decimal places.) Return on Sales Software     % ? Personal Computers % ? Foreign Operations % ? b-1. Compute the return on assets. (Input your answers as a...

  • Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales...

    Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $ 891 Cost of goods sold 751 Depreciation 41 Earnings before interest and taxes (EBIT) $ 99 Interest expense 22 Income before tax $ 77 Taxes 26.95 Net income $ 50.05 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets $ 379 $ 332 Long-term assets 278 232 Total assets $ 657 $ 564 Liabilities and shareholders’ equity...

  • Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales...

    Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes Net income $895.00 755.00 45.00 $ 95.00 26.00 $69.00 14.49 $ 54.51 BALANCE SHEET (Figures in 5 millions) End of Year Start of Year $ 383 286 $ 669 $ 340 236 $ 576 Assets Current assets Long-term assets Total assets Liabilities and shareholders' equity Current liabilities...

  • Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales...

    Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $ 892.00 Cost of goods sold 752.00 Depreciation 42.00 Earnings before interest and taxes (EBIT) $ 98.00 Interest expense 23.00 Income before tax $ 75.00 Taxes 15.75 Net income $ 59.25 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets $ 380 $ 334 Long-term assets 280 233 Total assets $ 660 $ 567 Liabilities and shareholders’ equity...

  • Omni Technology Holding Company has the following three affiliates: Software Personal Computers Foreign Operations Sales $...

    Omni Technology Holding Company has the following three affiliates: Software Personal Computers Foreign Operations Sales $ 40,450,000 $ 60,930,000 $ 180,260,000 Net income (after taxes) 2,096,000 2,170,000 8,600,000 Assets 5,410,000 25,740,000 60,730,000 Stockholders' equity 4,090,000 10,390,000 50,750,000       a-1. Compute the return on sales. Which affiliate has the highest return on sales?    Foreign Operations Software Personal Computer b-1. Compute the return on assets. (Input your answers as a percent rounded to 2 decimal places.) b-2. Which affiliate has the...

  • Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales...

    Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes Net income $899.00 759.00 49.00 $ 91.00 30.00 $ 61.00 12.81 $ 48.19 BALANCE SHEET (Figures in $ millions) End of Year Start of Year $ 387 294 $ 681 $ 348 240 $ 588 Assets Current assets Long-term assets Total assets Liabilities and shareholders' equity Current...

  • During the latest year, XYZ Corporation has total sales of $300,000, net income of 20,000, and...

    During the latest year, XYZ Corporation has total sales of $300,000, net income of 20,000, and its year-end total assets were $190,000. The firm's total debt to total assets ratio was 30 %. What is firm's total assets turnover ratio? Enter your answer as a number rounded to 2 decimal places; example 1.12. Your Answer: Answer Hide hint for Question 11 total assets turnover=sales/total assets

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT