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please help me. 25. Return on investment (ROI), Sorrento Company has three divisions-Northwest, South, and East. (This is the same company as the previous exercise.
please help me.
25. Return on investment (ROI), Sorrento Company has three divisions-Northwest, South, and East. (This is the same company as the previous exercise. This exercise can be assigned independently) Segmented income statement information for the most recent fiscal year ended December 31 is shown as follows. Assume average operating assets totaled $15,000,000 for the Northwest division, 56,500,000 for the South division, and $17,500,000 for the East division Sorrento Company Segmented Income Statements for the Current Fiscal Year Ended December 31 (dollar amounts are in thousands) Northwest Division South Division Division Sales Cost of goods sold Allocated overhead Selling and administrative expenses Operating income Income tax expense (35 rate) Net income $ 22.000.000 10.000.000 5 12.000.000 4.125.000 5.000.000 52.875.000 1 006250 $ 8,000,000 2.000.000 $6.000.000 1.500.000 3.200,000 $ 1,300,000 455.000 5 545.000 5.000.000 2625.000 Required: Calculate return on investment for each division OA Shot on OnePlus Powered by Dual Camera legu on vestment tell us about each division indicate why this measure is useful in evaluating investment centers ELF G H Return on Investment (ROI) ROI calculations are shown below. Sorrento Company Return on Investment For the Current Fiscal Year Ended December 31 Northwest South Division Division Operating Income $ 2.875,000 Average operating assets 15,000,000 Return on investment 19.17% East Division OA Shot on OnePlus Powered by Dust CanStep by Step Solution
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