Learning World Inc. has two divisions: Test Preparation and Language Arts. Results (in millions) for the past
Question:
Learning World Inc. has two divisions: Test Preparation and Language Arts. Results (in millions) for the past three years are partially displayed here:
Required
1. Complete the table by filling in the blanks.
2. Use the DuPont method of profitability analysis to explain changes in the operating-income to-total-assets ratios over the 2013 through 2015 period for each division and for Learning World as a whole. Comment on the results.
Operating Operating Income Operating Income Operating Operating Tota OperatingRevenuel Total Income Revenue Assets Revenue Total AssetsAssets 2 Test Preparation Division S 680$ 7,960 $1,920 2013 2014 2015 1096 11% 1,160 6Lanquage Arts Department S 620 $ 2,360 S1.280 3,0001,800 2,340 2013 2014 2015 Learning World Inc. 2013 2014 2015 25% 10 $1,300$10,320 $3,200 13
Step by Step Answer:
1 Operating Income Operating Revenues Total Assets Operating Income Operating Revenues Operating Rev...View the full answer
Cost Accounting A Managerial Emphasis
ISBN: 978-0133138443
7th Canadian Edition
Authors: Srikant M. Datar, Madhav V. Rajan, Charles T. Horngren, Louis Beaubien, Chris Graham
Related Video
The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
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