P10-46A Collect and analyze division data from an annual report (Learning Objective 3) Jubilee Company segments its company into four distinct divisions. The net revenues, operating profit, and total assets for these divisions are disclosed in the footnotes to Jubilee Company's consolidated financial statements and the following presented information: 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 Net Revenue Operating Profit 2017 2016 2015 2017 2016 2015 Home furnishings $10,750 $ 9,650 $ 9,250 $2,795 $2,520 $1,970 Office furniture 9,500 8,600 8,300 1,995 1,815 1,755 Store displays 12,100 10,900 10,400 1,210 1,070 1,010 Health-care 2.000 1.850 1.750 660 635 615 furnishings Total division $34,350 $31,000 $29,700 $6,660 $6,040 $5,350 Corporate (290) (250) (205) Total $34,350 $31,000 $29,700 $6,370 $5,790 $5,145 initiatives, and certain gains and losses that cannot be accurately allocated to specific divisions, such as derivative gains and losses. Amortization of Intangible Assets Depreciation and Other Amortization 2017 2016 2015 2017 2016 2015 Home furnishings $ 18 $13 $ 13 $ 415 $ 405 $ 410 Office furniture 78 73 73 285 265 260 Store displays 76 71 69 475 420 380 Health-care 15 35 40 37 furnishings Total division $172 $157 $160 $1.210 $1,130 $1,087 Corporate 35 40 39 Total $172 $157 $160 $1,245 $1,170 $1,126 Total Assets Capital Spending 2017 2016 2015 2017 2016 2015 Home furnishings $5,000 $ 3,750 $ 3,250 $ 505 $ 515 $ 475 Office furniture 7,600 7,000 6,800 520 350 295 Store displays 11,000 9,800 9,400 865 695 560 1.000 800 750 25 25 30 Health-care furnishings Total division $24,600 $21,350 $20,200 $1,915 $1,585 $1,360 Corporate 1.710 5,270 3.470 190 195 80 Total $26,310 $26,620 $23,670 $2,105 $1,780 $1,440 Corporate assets consist of cash, short-term investments, and property, plant, and equipment. The corporate property, plant, and equipment include the headquarters building, equipment within, and the surrounding property. a 1. What are Jubilee Company's four business divisions? Make a table listing each division, along with its net revenues, operating profit, and total assets in 2017. 2. Use the data you collected in Requirement 1 to calculate each division's sales margin in 2017. Interpret your results. 3. Use the data you collected in Requirement 1 to calculate each division's capital turnover in 2017. Interpret your results. 4. Use the data you collected in Requirement 1 to calculate each division's ROI in 2017. Interpret your results. 5. Can you calculate RI using the data presented? Why or why not
