Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Quick Company segments its company into four distinct divisions. The net revenues, operating profit, and total assets for these divisions are disclosed in the footnotes
Quick 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 Quick Company's consolidated financial statements and the following presented information: Read the requirements . Requirement 1. What are Quick Company's four business divisions? Fill in the table listing each division, along with its net revenues, operating profit, and total assets in 2020. Complete the table for the 2020 year. Net Revenue Operating Profit Total Assets Requirement 2. Use the data you collected in Requirement 1 to calculate each division's sales margin in 2020. Interpret your results. (Round your answers to the nearest whole percent.) Sales Margin % % % % Interpret your results. The only earning $ division of Quick Company has a much lower sales margin than the other divisions. They are on every $1 of sales, whereas the other divisions range from has the highest sales margin. on every dollar of sales. Requirement 3. Use the data you collected in Requirement 1 to calculate each division's capital turnover in 2020. Interpret your results. (Round your answers to two decimal places.) = Capital Turnover = = = Interpret your results. The divisions have capital turnover rates. This means that the divisions ability to generate sales revenue from their assets. has the highest capital turnover while has the lowest capital turnover. Requirement 4. Use the data you collected in Requirement 1 to calculate each division's ROI in 2020. Interpret your results. (Enter your answer a percent rounded to the nearest hundredth of a percentage, X.XX%.) - ROI : = % % % % Interpret your results. V have the highest ROI. Both of these divisions had the V sales margins which V had the lowest ROI, in part driven by the fact that it had the sales margin of the four divisions. Requirement 5. Can you calculate RI using the data presented? Why or why not? Financial reporting is for the benefit of not V. Therefore company information is disclosed in the financial statements. Residual income calculations involve Since this information presented, residual income - X Net Revenue and Operating Profit Net Revenue Operating Profit 2020 2019 2018 2020 2019 2018 Home furnishings $ 11,000 $ 9,900 $ 9,500 $ 2,530 $ 2,255 $ 1,705 Office furniture 9,100 8,200 7,900 1,820 1,640 1,580 Store displays 1,715 1,575 1,515 12,250 1,750 11,050 1,600 10,550 1,500 525 500 480 Health-care furnishings Total division $ 34,100 $ 30,750 $ 29,450 $ 6,590 $ 5,970 $ 5,280 Corporate (310) (270) (225) Total $ 34,100 $ 30,750 $ 29,450 $ 6,280 $ 5,700 $ 5,055 Corporate includes the costs of our corporate headquarters, centrally managed initiatives, and certain gains and losses that cannot be accurately allocated to specific divisions, such as derivative gains and losses. Total Assets & Other Information Amortization of Intangible Assets Depreciation and Other Amortization 2020 2019 2018 2020 2019 2018 Home furnishings $ 14 $ 9 $ 9 $ 445 $ 435 $ 440 Office furniture 86 81 81 270 250 245 Store displays 74 69 67 490 435 395 6 50 55 Health-care furnishings 52 Total division $ 174 $ 159 $ 163 $ 1,255 $ 1,132 1,175 $ 20 15 19 Corporate $ 174 $ 159 $ 163 $ 1,270 $ 1,195 S 1,151 Total Total Assets Capital Spending 2020 2019 2018 2020 2019 2018 $ 6,875 $ 5,625 $ 5,125 $ 510 $ 520 $ 480 Home furnishings Office furniture 6,500 5,900 5.700 505 335 280 Store displays 12,250 11.050 10,650 830 660 525 1,000 800 750 20 20 25 Health-care furnishings Total division $ 23,375 $ 1,310 26,625 $ 1,760 22.225 $ 3,520 1,865 $ 215 1,535 $ 220 5,320 Corporate 105 $ 28,385 $ 28,695 $ 25,745 $ 2.080 $ 1,755 $ 1,415 Total Corporate assets consist of cash, short-term investments, and property, plant, and equipment. The corporate property, plant, and equipment includes the headquarters building, equipment within, and the surrounding property
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started