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Sever The following excerpt is from Benson Company's 2019 annual report filed with the SEC. Management evaluates the performance of our operating segments seperately
Sever The following excerpt is from Benson Company's 2019 annual report filed with the SEC. Management evaluates the performance of our operating segments seperately to individually monitor the different factors affecting financial performance. Our Company manages income taxes and certain treasury-related items, such as interest income and expense. on a global basis within Corporate. We evaluate segment performance based primarily on net operating revenues and operating income (loss) Selected segment data for The Benson Company for the 2019 and 2018 fiscal years follow. Dollar amounts are in millions Asia Europe, Middle Cast, & Africa 2019 Fiscal Year Income before taxes Net operating revenues Identifiable operating assets 2018 Piscal Year $ 7,032 4,066 5,865 Latis America $4,346 2,661 North America Pacific $ 8,901 2,406 2,697 18,069 $ 5,082 2,539 2,522 Net operating revenues $7,341 54,136 56,767 $5,100 Income before taxes Identifiable operating assets 4,100 4,457 2,416) 2,295 2,950 17,016 2,598 2,474 Required a. Compute the ROI for each of Benson's geographical segments for each fiscal year. Which segment appears to have the best performance during 2019 based on their ROIs? Which segment showed the most improvement from 2018 to 20197 Note: Round your percentage answers to 1 decimal place (i.e., 0.234 should be entered as 23.4) and other answers to nearest dollar amount. b. Assuming Benson's management expects a minimum return of 30 percent. calculate the residual income for each segment for each fiscal year. Which segment appears to have the best performance based on residual income? Which segment showed the most improvement from 2018 to 2019? Note: Enter your answers in millions. Negative amounts should be indicated by minus sign. Round your percentage answers to 1 decimal place (i.e., 0.234 should be entered as 23.4) and other answers to nearest dollar amount. a Return on Investment (2019) a. Return on Investment (2018) a Which segment appears to have the best performance during 2019 based on their ROIs? a. Which segment showed the most improvement from 2018 to 2019? b Residual Income (2019) b. Residual Income (2018) b. Which segment appears to have the best performance based on residual income? b. Which segment showed the most improvement from 2018 to 20192 Europe, Middle East, & Africa Latin America North America Asia Pacific
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