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The United World Corporation has three subsidiaries. Computers Magazines Cable TV Sales $ 2 0 , 2 2 0 , 0 0 0 $ 5

The United World Corporation has three subsidiaries.
Computers Magazines Cable TV
Sales $20,220,000 $5,580,000 $4,320,000
Net income (after taxes)1,750,000228,000366,000
Assets 8,670,0008,980,0003,390,000
a-1. Compute the return on sales. (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
Return on sales
Computers 8.66 Numeric ResponseEdit Unavailable. 8.66 correct. %
Magazines 4.09 Numeric ResponseEdit Unavailable. 4.09 correct. %
Cable TV 8.47 Numeric ResponseEdit Unavailable. 8.47 correct. %
a-2. Which division has the lowest return on sales?
multiple choice 1
cable TV
magazines Correct
computers
b-1. Compute the ROA. (Round the final answers to 2 decimal places.)
Return on assets
Computers 20.18 Numeric ResponseEdit Unavailable. 20.18 correct. %
Magazines 2.54 Numeric ResponseEdit Unavailable. 2.54 correct. %
Cable TV 10.79 Numeric ResponseEdit Unavailable. 10.79 correct. %
b-2. Which division has the highest ROA?
multiple choice 2
computers Correct
cable TV
magazines
c. Compute the ROA for the entire corporation. (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Return on assets 11.68 Numeric ResponseEdit Unavailable. 11.68 incorrect. %
d. If the $3,390,000 investment in the cable TV division is sold and redeployed in the computer subsidiary at the same rate of ROA currently achieved in the computer division, what will be the new ROA for the entire corporation? (Round the final answer to 2 decimal places.)
New return on assets 14.43 Numeric ResponseEdit Unavailable. 14.43 incorrect. %

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