QuickCo segments its company into four distinct divisions. The net revenues, operating profit, and total assets for
Question:
Notes to Consolidated Financial Statements
Note 1-Basis of Presentation and Our Divisions:
We manufacture, market, and sell a variety of products through our divisions, including furniture and fixtures for the home, office, stores, and health-care facilities. The accounting policies are the same for each division, as indicated in Note 2. There is, however, one exception. QuickCo centrally manages commodity derivatives and does not allocate any gains and losses incurred by these contracts to individual divisions. These derivatives are used to hedge the underlying price risk to the commodities used in production. The resulting gains and losses from these contracts are recorded under corporate expenses rather than allocated to specific divisions.
Corporate includes the costs of our corporate headquarters, centrally-managed initiatives, and certain gains and losses that cannot be accurately allocated to specific divisions, such as derivative gains and losses.
Corporate Assets consist of cash, short-term investments, and property, plant, and equipment. The corporate property, plant, and equipment includes the headquarters building, equipment within, and the surrounding property.
Requirements
1. What are QuickCo's four business divisions? Make a table listing each division, its net revenues, operating profit, and total assets.
2. Use the data you collected in Requirement 1 to calculate each division's sales margin. Interpret your results.
3. Use the data you collected in Requirement 1 to calculate each division's capital turnover. Interpret your results.
4. Use the data you collected in Requirement 1 to calculate each division's ROI. Interpret your results.
5. Can you calculate RI using the data presented? Why or why not?
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer: