Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Show-Wikisation and and The company is segmented into five divisions Paint Store branded allocation Consument sold through home improvement stores Automotive sales to cus) Wool,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Show-Wikisation and and The company is segmented into five divisions Paint Store branded allocation Consument sold through home improvement stores Automotive sales to cus) Wool, and Administration The following is selected divisional information for its the largest divisions. Part Stoves and Consumer click on to the information) Management specieda 10% true ofretum X Data Title Requirement. Cech RO Run of your Betting the format - to four decalcomander your percent onded to Avenge Total As Net Sales Operating Fle Inc. 53000 5 190.000 Paint Stores Con 0.000 em 2: chr your Du Read the requirements M Requirement 1. Calculate each division's ROI Round all of your answers to four decimal places. Begin by selecting the formula to calculate return on investment (ROI), and then enter the amounts to calculate each div two decimal places. XXX%) ROL Paint Stores % Consumer % Requirement 2. Calculate each division's profit margin ratio Interpret your results (Click the icon to VIE Paint Stores (branded retail locations), Consumer (paint sold through home improvement stores), Automotive (sales to auto manufacturers). International, and Administration Read the requirements Management has specif Requirement 3. Calculate each division's asset turnover ratio. Interpret your results, Begin by selecting the formula to calculate asset turnover ratio and then enter the amounts to calculate each division's asset turnover ratio = Asset tumover ratio Paint Stores Consumer The division is more efficient in generating sales with its average total assets tament 1 Internet your results Marmortas specified a 15% targettate of retum First, select the expanded ROI formula ROI Now calculator Rotor each divisioning the expanded of formula (Ere you wewe as a percee murded to two decimal places, XXX%) Using the expanded formida, the ROI for the Past Stores division is Using the expanded tomat Rol for the Commer divisions % The Consumo division's profitability on schoofret sa revenues efficiency. These results case the Pant Stores divisions ROE to be than the Part Stores division profitability the Port Stores do ency city the Condivision' ROL than the Consumer dy's Shen-Wie is a national paint manufacture and retail. The company is segmented into five divisions Paint Stores banded real location). Consumer point sold the home improvement stores). Automotive The following is selected divisional information for stort som Click the icon to view the information) ses to to manufacturers), Interrational, and Administration Read the reci Management as specified a 19% target rate of return Requirements Calculate each division's interpret your results, and offer a recommendation for any division with negative First, select the formula to calculate residual income (2) RI Now calculate each division's RI (Une a minus signor parentheses to enter negative residual income The Rl for the Paint Stores division is The Rl for the Consumer division is meeting management's target rate of retum A division with a negative RI should consider met water of Award code Requirement acheme of the factors were consider weg met om Management modern die Forecast We are o roma doping Manager wil metodo che for the whether it should Choose from any numbers and then she The following is selected divisional information for its two largest divisions: Paint Stores and Consumer. Click the icon to view the information.) Management has specified a 19% target rate of return. -X Ins to four decimal places and enter your answer as a percent rounded t Sales Operating Average Total venue Income Assets - 940,000 $ 485,000 $ 1,415.000 305,000 190.000 1.590.000 Print Done margin ratio as a percent founded to two decimal places XXX%) % stion Shewin-Wilkens is a national paint manufacturer and retailer. The company is segmented into five divisions: Paint Stores (branded retail locations). Consumer (paint sold through home improvement stores), Automotive (sales to auto manufacturers), International, and Administration. Read the requirements Data Table Requirement 1. Calculate each division's ROI Round all of your answers to Begin by selecting the formula to calculate return on investment (ROI), and two decimal places, X XX%) C Paint Stores Consumer Net Sales Revenue $3.940,000 $ 1305 900 Paint Stores Consumer Requirement 2. Calculate each division's profit margin ratio. Interpret your Begin by selecting the formula to calculate profit margin ratio, and then ente Print Don PS Data Table Net Sales Revenue Operating Income Average Total Assets Paint Stores 485.000 $ 1,415,000 $ 3,940,000 $ 1,305,000 Consumer 190.000 1,590,000 Print Done marg TITUTTETTE % En continue to the next question LU Read the requirements. Requirement 1. Calculate each division's ROI. Round all of your answers to four decimal places. Begin by selecting the formula to calculate return on investment (ROI), and then enter the amounts to calculate each two decimal places, X.XX%) 1 11 ROI Paint Stores 11 % Consumer % Requirement 2. Calculate each division's profit margin ratio. Interpret your results Begin by selecting the formula to calculate profit margin ratio, and then enter the amounts to calculate each division's p Profit margin ratio Paint Stores Choose from any list or enter any number in the input fields and then continue to the next question Le Read the requirements. Consumer Mana The division is more profitable on each dollar of sales. Requirement 3. Calculate each division's asset turnover ratio. Interpret your results. Begin by selecting the formula to calculate asset turnover ratio, and then enter the amounts to calculate each division's asse Asset turnover ratio Paint Stores Consumer The division is more efficient in generating sales with its average total assets Requirement 4. Use the expanded ROI formula to confirm your results from Requirement 1 Interpret your results. First, select the expanded ROI formula Choose from any list or enter any number in the initials and then Click the icon to view (sales to auto manufacturers). International, and Administration Read the requirements Management has specified First, select the expanded ROI formula. ROI Now calculate ROI for each division using the expanded ROI formula. (Eriter your answers as a percent rounded to two decimal places, X.XX%) Using the expanded formula, the ROI for the Paint Stores division is % Using the expanded formula, the ROI for the Consumer division is % The Consumer division's profitability on each dollar of net sales revenue is than the Paint Stores division's profitability. However, the Paint etticiency. These results cause the Paint Stores division's ROI to be the Consumer division's ROL Requirement 5. Calculate each division's RI Interpret your results, and offer a recommendation for any division with negative RI First, select the formula to calculate residual income (RI). Choose from any list or enter any number in the input fields and then continue to the next question o te improvement stores), Automotive Click the icon to view the information ) Management has specified a 19% target rate of return ROI (Enter your answers as a percent rounded to two decimal places, XXX%.) % %6 than the Consumer division's ance is than the Paint Stores division's profitability. However, the Paint Stores division's efficiency is significantly the Consumer division's ROI and offer a recommendation for any division with negative RI and then continue to the next question Read the requirements Management has specified a 19% targe etficiency. These results cause the Paint Stores division's ROI to be the Consumer division's ROI Requirement 5. Calculate each division's RI Interpret your results, and offer a recommendation for any division with negative Ri. First, select the formula to calculate residual income (RI). RI Now calculate each division's RI (Use a minus sign or parentheses to enter negative residual income.) The Rl for the Paint Stores division is The Ritor the Consumer division is meeting management's target rate of return A division with a negative RI should consider Requirement. Describe some of the factors that management considers when setting its minimum target rate of retum Choose from any list or det any number in the input fields and then continue to the next question Now calculate each division's RI. (Use a minus sign or parentheses to enter negative residual income.) The Rl for the Paint Stores division is The Rl for the Consumer division is meeting management's target rate of return. A division with a negative RI should consider Requirement 5. Describe some of the factors that management considers when setting its minimum target rate of return require Management will need to decide different minimum target rates for different divisions For example management for the calculations and whether it should be net of Choose from any list or enter any number in the input fields and then continue to the next question RI enter negative residual income.) ate of return. A division with a negative RI should consider onsiders when setting its minimum target rate of retur, ferent divisions For example, management require a higher target rate of return from a division operating in a skier business environment Managemen or the calculations and whether it ould be net of

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones of Managerial Accounting

Authors: Mowen, Hansen, Heitger

3rd Edition

324660138, 978-0324660135

More Books

Students also viewed these Accounting questions

Question

22. Rewrite using only positive exponents: 10-5xy =

Answered: 1 week ago