Question
The United World Corporation has three subsidiaries. Computers Magazines Cable TV Sales $20,220,000 $5,000,000 $4,720,000 Net income (after taxes) 1,780,000 598,000 385,000 Assets 8,550,000 8,040,000
The United World Corporation has three subsidiaries.
| Computers | Magazines | Cable TV | ||||
| Sales | $20,220,000 | $5,000,000 | $4,720,000 | |||
| Net income (after taxes) | 1,780,000 | 598,000 | 385,000 | |||
| Assets | 8,550,000 | 8,040,000 | 3,090,000 | |||
a-1. Compute the return on sales. (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
| Return on sales | |
| Computers | % |
| Magazines | % |
| Cable TV | % |
a-2. Which division has the lowest return on sales?
multiple choice 1
-
magazines
-
cable TV
-
computers
b-1. Compute the ROA. (Round the final answers to 2 decimal places.)
| Return on assets | |
| Computers | % |
| Magazines | % |
| Cable TV | % |
b-2. Which division has the highest ROA?
multiple choice 2
-
cable TV
-
computers
-
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 %
d. If the $3,090,000 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 %
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Planning And Budgeting For The Agile Enterprise A Driver-based Budgeting Toolkit
Authors: Barrett, Richard
1st Edition
0750683279, 9780750683272
