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Question 21 (4 points) Vital Industries is a company that manufactures personal care products. It has three divisions: hair care, skin care and dental
Question 21 (4 points) Vital Industries is a company that manufactures personal care products. It has three divisions: hair care, skin care and dental care. Following is an extract from the financial statements for the year ending 31 December 2014 Hair Care Skin Care Dental Care Revenue $900 million $600 million $300 million. Net income/(loss) $210 million $100 million ($50 million) In the board meeting summoned for review of financial statements, a director proposed that the company should dispose of the dental care division because it is loosing money. The CEO argued that the board can't conclude that a segment is losing money just because it generated net loss for a period. He suggested that the company's chief financial officer should conduct a detailed analysis for presentation in the next board meeting Being the company's management accountant Company dividend payment policy is relevant. True False
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