Bentz Co. has two divisions, A and B. Invested assets and condensed income statement data for each division for the year ended December 31 are as follows: Division A Division B Revenues $190,000 $125,500 Operating expenses 112,500 92,750 Support department allocations 29,500 12,625 Invested assets 225,000 99,000 a. Prepare condensed income statements for the past year for each division. Deferred expense Invested assets Operating income before support department allocations Revenues Support department allocations Bentz Co. Divisional Income Statements For the Year Ended December 31 Division A Division B $fill in the blank 9c7615fbffbd07a_2 $fill in the blank 9c7615fbffbd07a_3 fill in the blank 9c7615fbffbd07a_5 fill in the blank 9c7615fbffbd07a_6 $fill in the blank 9c7615fbffbd07a_8 $fill in the blank 9c7615fbffbd07a_9 fill in the blank 9c7615fbffbd07a_11 fill in the blank 9c7615fbffbd07a_12 Operating income $fill in the blank 9c7615fbffbd07a_13 $fill in the blank 9c7615fbffbd07a_14 b. Using the DuPont formula, determine the profit margin, investment turnover, and return on investment (ROI) for each division. Round the profit margin percentage to two decimal places, the investment turnover to four decimal places, and the return on investment to one decimal place. Division A Division B Profit margin fill in the blank 92af35ff7f9ffab_1 % fill in the blank 92af35ff7f9ffab_2 % Investment turnover fill in the blank 92af35ff7f9ffab_3 fill in the blank 92af35ff7f9ffab_4 Rate of return on investment fill in the blank 92af35ff7f9ffab_5 % fill in the blank 92af35ff7f9ffab_6 %
Bentz Co. has two divisions, A and B. Invested assets and condensed income statement data for each division for the year ended December 31 are as follows: Division A Division B Revenues $190,000 $125,500 Operating expenses 112,500 92,750 Support department allocations 29,500 12,625 Invested assets 225,000 99,000 a. Prepare condensed income statements for the past year for each division. Deferred expense Invested assets Operating income before support department allocations Revenues Support department allocations Bentz Co. Divisional Income Statements For the Year Ended December 31 Division A Division B $fill in the blank 9c7615fbffbd07a_2 $fill in the blank 9c7615fbffbd07a_3 fill in the blank 9c7615fbffbd07a_5 fill in the blank 9c7615fbffbd07a_6 $fill in the blank 9c7615fbffbd07a_8 $fill in the blank 9c7615fbffbd07a_9 fill in the blank 9c7615fbffbd07a_11 fill in the blank 9c7615fbffbd07a_12 Operating income $fill in the blank 9c7615fbffbd07a_13 $fill in the blank 9c7615fbffbd07a_14 b. Using the DuPont formula, determine the profit margin, investment turnover, and return on investment (ROI) for each division. Round the profit margin percentage to two decimal places, the investment turnover to four decimal places, and the return on investment to one decimal place. Division A Division B Profit margin fill in the blank 92af35ff7f9ffab_1 % fill in the blank 92af35ff7f9ffab_2 % Investment turnover fill in the blank 92af35ff7f9ffab_3 fill in the blank 92af35ff7f9ffab_4 Rate of return on investment fill in the blank 92af35ff7f9ffab_5 % fill in the blank 92af35ff7f9ffab_6 %
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 14.5.1P
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Question
Bentz Co. has two divisions, A and B. Invested assets and condensed income statement data for each division for the year ended December 31 are as follows:
Division A | Division B | |||
Revenues | $190,000 | $125,500 | ||
Operating expenses | 112,500 | 92,750 | ||
Support department allocations | 29,500 | 12,625 | ||
Invested assets | 225,000 | 99,000 |
a. Prepare condensed income statements for the past year for each division.
- Deferred expense
- Invested assets
- Operating income before support department allocations
- Revenues
- Support department allocations
Bentz Co. | ||
Divisional Income Statements | ||
For the Year Ended December 31 | ||
Division A | Division B | |
$fill in the blank 9c7615fbffbd07a_2 | $fill in the blank 9c7615fbffbd07a_3 | |
fill in the blank 9c7615fbffbd07a_5 | fill in the blank 9c7615fbffbd07a_6 | |
$fill in the blank 9c7615fbffbd07a_8 | $fill in the blank 9c7615fbffbd07a_9 | |
fill in the blank 9c7615fbffbd07a_11 | fill in the blank 9c7615fbffbd07a_12 | |
Operating income | $fill in the blank 9c7615fbffbd07a_13 | $fill in the blank 9c7615fbffbd07a_14 |
b. Using the DuPont formula, determine the profit margin, investment turnover, and
Division A | Division B | |||
Profit margin | fill in the blank 92af35ff7f9ffab_1 | % | fill in the blank 92af35ff7f9ffab_2 | % |
Investment turnover | fill in the blank 92af35ff7f9ffab_3 | fill in the blank 92af35ff7f9ffab_4 | ||
fill in the blank 92af35ff7f9ffab_5 | % | fill in the blank 92af35ff7f9ffab_6 | % |
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