Question
Chapa a national manufacturer of? lawn-mowing and? snow-blowing equipment, segments its business according to customer? type: professional and residential. The following divisional information was available
Chapa a national manufacturer of? lawn-mowing and? snow-blowing equipment, segments its business according to customer? type: professional and residential. The following divisional information was available for the past? year
| Net Sales | Operating Income | Average Total Assets | |||
| Residential | $500,000 | $59,150 | $182,000 | ||
| Professional | 1,000,000 | 152,800 |
| 382,000 |
|
Management has a
23% target rate of return for each division
Requirements
1. Calculate each? division's ROI. Round all of your answers to four decimal places.
2. Calculate each? division's profit margin ratio. Interpret your results.
3.Calculate each? division's asset turnover ratio. Interpret your results.
4.Use the expanded ROI formula to confirm your results from Requirement 1. What can you? conclude?
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Advanced Principles Of Auditing
Authors: Hugo Romero
1st Edition
1632409372, 978-1632409379
