Frank's Fixtures has two divisions: the Plumbing Division and the Electrical Division. Following are their operating data

Question:

Frank's Fixtures has two divisions: the Plumbing Division and the Electrical Division. Following are their operating data for the year:

Plumbing Electrical Division Division Revenue Operating profit. Total assets Stockholders' equity Long-term debt S125,00

Required:
1. Calculate the ROI for each division (use total assets).
2. Interpretive Question: On the basis of this return, which division appears to have the better performance?Why?

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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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Question Posted: Dec 28, 2011 03:38 AM

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Frank's Fixtures has two divisions: the Plumbing Division and the Electrical Division. Following are their operating data

Question:

Plumbing Electrical Division Division Revenue Operating profit. Total assets Stockholders' equity Long-term debt S125,000 S180,000 15,000 75,000 18,000 3 34,500 25,000 23,000

Step by Step Answer:

ROI 1 2 On the basis of ROI it appears that the El...View the full answer

Accounting concepts and applications

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