Selected financial data for Petersen Corporation's revenue and income (contribution) are reproduced below:

Required:
a. Use common-size statements to analyze every division's (1) contribution to total consolidated revenue, (2) contribution to total divisional income, and (3) ratio of income to revenue.
b. Interpret and comment on the evidence revealed from your computations in a.

Transcribed Image Text:

Year 1 Line of Business Revenue Manufactured and engineered products Year 2 Year 3 Year 4 30,341 29,807 32,702 43,870 7,424 44,223 5,906 29,801 5,996 29,878 65,681 6,824 33,623 73,149 12,261 85410 Other equipment Total manufactured & engineered products. .. 66,048 Engineering and erecting services- . . Total environmental systems group. . . . . . 95,517 36,758 132,275 66,048 65,681 Year 1 ....5,537 16,615 42,212 Line of Business Year 2 Year 3 Year 4 31,214 57,288 20,445 108,947 Frye Copysystems Sinclair & Valentine A. L. Garber 28,099 53,763 15,223 97,085 39,270 60,973 24,808 Total graphics group 125,051 Total consolidated revenue $108,260 $162,766 $194,357 $257,326 Income Manufactured and engineered products.. Engineering and erecting services International operations.... 3,785 $3,785 $ 3,943 9,209 $10,762 3,189 2,323 2,269 6,212 2,011 3,723 926 6,660 12,872 1,224 2,030 12.463 2,799 4,628 1.304 8,731 21,194 (13,179) , _ 2,265 6,050 1,459 Total environmental systems group Frye Copysystems Sinclair & Valentine A. L Garber (295) 1,164 7,214 (5,047) $ 2,167 16,274 3,597 5,142 1,457 10,196 26,470 Total graphics group Total divisional income Unallocated expenses and taxes .. Total income from continuing operations.··· (8,146) (16,449) -(o.1_ 4,726 $ 8,015 ,