Bentz Co. has two divisions, A and B. Invested assets and condensed income statement data for each division for the year ended December 31 are as follows:

		Division A		Division B
Revenues		$190,000		$125,500
Operating expenses		112,500		92,750
Support department allocations		29,500		12,625
Invested assets		225,000		99,000

Question Content Area

a. Prepare condensed income statements for the past year for each division.

Bentz Co. Divisional Income Statements For the Year Ended December 31

	Division A	Division B
Deferred expenseInvested assetsOperating income before support department allocationsRevenuesSupport department allocations	$- Select -	$- Select -
Communication expenseInvested assetsOperating expensesOperating income before support department allocationsSupport department allocations	- Select -	- Select -
Gross profitLoss from operations before support department allocationsNet incomeNet lossOperating income before support department allocations	$- Select -	$- Select -
Advertising expensesInvested assetsOperating expensesRevenuesSupport department allocations	- Select -	- Select -
Operating income	$fill in the blank 24e51e03102400f_13	$fill in the blank 24e51e03102400f_14

Question Content Area

b. Using the DuPont formula, determine the profit margin, investment turnover, and return on investment (ROI) for each division. Round the profit margin percentage to two decimal places, the investment turnover to four decimal places, and the return on investment to one decimal place.

	Division A		Division B
Profit margin	fill in the blank ce6598027fb8026_1	%	fill in the blank ce6598027fb8026_2	%
Investment turnover	fill in the blank ce6598027fb8026_3		fill in the blank ce6598027fb8026_4
Rate of return on investment	fill in the blank ce6598027fb8026_5	%	fill in the blank ce6598027fb8026_6	%