Question

# 5. Selected operating data for two divisions of Ashley Company is given below: NORTH SOUTH Sales...

5. Selected operating data for two divisions of Ashley Company is given below:

NORTH SOUTH

Sales 720,000 600,000

Total Assets 360,000 200,000

Fixed Assets 140,000 150,000

Total Liabilities 120,000 140,000

Long-Term Liabilities 80,000 20,000

Net income 72,000 48,000

Calculate ROA, ROE, Profit Margin and Fixed Assets Turnover for both the North and South divisions.

ROA = Net Income / Total Assets

North:

= 72,000 / 360,000

= 0.20 i.e 20%

South:

= 48,000 / 200,000

= 0.20 i.e 20%

ROE = Net Income / [ Total Assets - Total Liabilities ]

North :

= 72,000 / [ 360,000 - 120,000 ]

= 72,000 / 240,000

= 0.3 i.e 30%

South:

= 48,000 / [ 200,000 - 140,000 ]

= 48,000 / 60,000

= 0.8 i.e 80%

Profit Margin = Net Income / Sales

North:

= 72,000 / 720,000

= 0.10 i.e 10%

South:

48,000 / 600,000

= 0.08 i.e 8%

Fixed Asset Turnover = Sales / Fixed Assets

North:

= 720,000 / 140,000

= 5.14

South:

= 600,000 / 150,000

= 4

Pls comment, if any further assistance is required

#### Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
• ### 5. Selected operating data for two divisions of Ashley Company are given below: NORTH SOUTH Sales...

5. Selected operating data for two divisions of Ashley Company are given below: NORTH SOUTH Sales 840,000 600,000 Total Assets Fixed Assets Total Liabilities Long-Term Liabilities Net income 360.000 140,000 120.000 80,000 72,000 400,000 150,000 150,000 50.000 48.000 Calculate ROA, ROE, Profit Margin and Fixed Assets Turnover for both the North and South divisions (2 points)

• ### 5. Selected operating data for two divisions of Ashley Company are given below: NORTH soUTH Sales...

5. Selected operating data for two divisions of Ashley Company are given below: NORTH soUTH Sales Total Assets Fixed Assets Total Liabilities Long-Term Liabilities Net income 00,000 400,000 360,000 100,000 40,00060,000 20,000 40,000 80,000 20,000 8,000 60,o00 Calculate ROA, ROE, Profit Margin and Fixed Assets Turnover for both the North and South divisions.

• ### Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format...

Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company \$ 600,000 360,000 240,000 120,000 120,000 50,000 \$ 70,000 North \$ 400,000 280,000 120,000 60,000 \$ 60,000 South \$ 200,000 80,000 120,000 60,000 \$ 60,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in...

• ### Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format...

Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company \$ 600,000 360,000 240,000 120,000 120,000 50,000 \$ 70,000 North \$ 400,000 280,000 120,000 60,000 \$ 60,000 South \$ 200,000 80,000 120,000 60,000 \$ 60,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in...

• ### Presented below is selected information for three regional divisions of Medina Company. Divisions North West South...

Presented below is selected information for three regional divisions of Medina Company. Divisions North West South Contribution margin \$299,700 \$499,800 \$399,300 Controllable margin \$140,000 \$359,100 \$208,600 Average operating assets \$1,000,000 \$1,890,000 \$1,490,000 Minimum rate of return 12 % 15 % 8 % a) Compute the return on investment for each division. North Division % West Division % South Division % b) Compute the residual income for each division Compute the return on investment for each division. North Division \$ West...

• ### Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format...

Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement shown below: Total Company North South   Sales \$ 600,000 \$ 400,000   \$ 200,000     Variable expenses 360,000   280,000   80,000     Contribution margin 240,000   120,000   120,000     Traceable fixed expenses 132,000   66,000   66,000     Segment margin 108,000   \$ 54,000   \$ 54,000     Common fixed expenses 56,000     Net operating income \$ 52,000   Required: 1. Compute the companywide break-even point in dollar sales .                2. Compute the...

• ### Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Sales...

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Sales Average operating assets Net operating income Property, plant, and equipment (net) Division New South Queensland Wales \$ 1,144,000 \$2,220,000 \$ 520,000 \$ 600,000 \$ 125,840 \$ 177,600 \$ 252.000 \$ 202,000 Required: 1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. 2. Which divisional manager seems to be doing the...

• ### Assume a company with two divisions (A and B) prepared the following segmented income statement: Sales...

Assume a company with two divisions (A and B) prepared the following segmented income statement: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income A \$ ? 120,000 ? 100,000 \$ ? B \$ 200,000 140,000 ? 80,000 \$ (20,000 What is Division A's segment margin? Multiple Choice O \$53,000 \$13,000 \$72,700 100,000 \$ ? 80,000 \$ (20,000 \$ Traceable fixed expenses Segment margin Common fixed expenses Net operating income What is Division...

• ### Presented below is selected information for three regional divisions of Medina Company. Divisions North West South...

Presented below is selected information for three regional divisions of Medina Company. Divisions North West South Contribution margin \$299,000 \$499,100 \$400,800 Controllable margin \$139,500 \$361,100 \$208,500 Average operating assets \$930,000 \$1,570,000 \$1,390,000 Minimum rate of return 13 % 14 % 8 % Compute the return on investment for each division. North Division % West Division % South Division % LINK TO TEXT Compute the residual income for each division. North Division \$ West Division \$ South Division \$ LINK TO...

• ### QUESTION 4 The Compass Company has two divisions - North and South. The divisions have the...

QUESTION 4 The Compass Company has two divisions - North and South. The divisions have the following Revenues and Expenses: North South \$710,000 300,000 210,000 100,000 100,000 Management at Compass is considering the elimination of the North Division. If the North Division is Sales Variable Expenses Traceable Fixed Expenses Allocated Common Corporate Expenses Net Operating Income or (Loss) \$900,000 450,000 260,000 240,000 (50,000) eliminated, its traceable fixed expenses could be avoided. The total common corporate expenses would be unaffected. Given...