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Pool Accessories, Inc., has two divisionsFurniture and Supplies. The following segmented financial information is for the most recent fiscal year ended December 31. Furniture Division

Pool Accessories, Inc., has two divisionsFurniture and Supplies. The following segmented financial information is for the most recent fiscal year ended December 31.

Furniture Division

Supplies Division

Sales

$3,000,000

$1,000,000

Cost of goods sold

1,600,000

430,000

Allocated overhead

375,000

125,000

Selling and administrative expenses

250,000

200,000

Average net operating assets

$8,500,000

2,100,000

Assume for both divisions that the tax rate is 30 percent, and the cost of capital is 8%.

Answer the following questions:

Complete the following segmented income statement and calculate the profit margin ratio for each division at the bottom of the segmented income statement.

Furniture Division

Supplies Division

Sales

$

$

COGS

Gross margin

$

$

Allocated overhead

Selling and administrative expenses

Operating income

$

$

Income tax expense (30% of op income)

Net Income

$

What is the profit margin ratio for the two divisions (round to the nearest integer)? Furniture: %; Supplies: %

What is the ROI for the two divisions (round to the nearest integer)? Furniture: %; Supplies: %

What is the RI for the two divisions (separate thousands with comma)? Furniture: $ ; Supplies: $

What is the EVA for the two divisions (For the EVA calculation, the only adjustment to be made to net income is to deduct taxes. No adjustments are required for assets; separate thousands with comma. Display negative value in parentheses)? Furniture: $ ; Supplies: $

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