Question
Meets Auto Shop Inc. allows its divisions to operate as autonomous units. Their results for the current year were as follows: Sport Terrain City Revenues
Meets Auto Shop Inc. allows its divisions to operate as autonomous units. Their results for the current year were as follows: Sport Terrain City Revenues $1,700,000 $800,000 $6,000,000 Current assets 230,000 40,000 410,000 Capital assets 870,000 660,000 1,590,000 Current liabilities 100,000 100,000 500,000 Net operating income 240,000 50,000 610,000 After-tax income 188,400 36,400 484,400 Weighted average cost of capital 10% 10% 10% Required: For each division compute (to two decimal) the: 1. The margin %? 2. Return on investment (to two decimal) %? 3. Economic value added? 4. Residual income? 5. Turnover (to two decimal)?
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