Analysis of return on invested assets, comparison of two divisions, DuPont method. Learning World, Inc. has two
Question:
Analysis of return on invested assets, comparison of two divisions, DuPont method. Learning World, Inc. has two divisions: Test Preparation and Language Arts. Results (in millions) for the past three years are partially displayed here:
1. Complete the table by filling in the blanks.
2. Use the DuPont method of profitability analysis to explain changes in the operating-income-to-total- assets ratios over the 2008 through 2010 period for each division and for Learning World as a whole. Comment on theresults.
Operating Operating Total Operating Operating Operating Income Revenues Assets Income/ Revenues! Income/ Оретating Revenues Total Total Assets Assets Test Preparation Division $ 680 $ 7,960 $ 1920 2008 ? 10% 2009 840 42% 2010 1,160 11% Language Arts Department $ 2,360 $ 620 $1,280 2008 3,000 22% 2009 1,800 25% 2010 2,340 Learning World Inc. $1,300 $10,320 $3,200 2008 2009 2010
Step by Step Answer:
Analysis of return on invested assets comparison of two divisions DuPont method 1 2 Based on revenue...View the full answer
Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
Related Video
The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
Students also viewed these Cost Accounting questions
-
Learning World, Inc. has two divisions: Test Preparation and Language Arts. Results (in millions) for the past three years are partially displayed here: REQUIRED 1. Complete the table by filling in...
-
For the past three years DMR, Inc. did not write off numerous accounts of customers who were in default and unlikely to pay their bills. DMR management, who had earlier refused to approve any...
-
The company reports the following data for the past three years Compute the allowance for bad debts as a percentage of accounts receivable and evaluate the quality of accounts receivable over the...
-
for a manufacturing company product costs include all of the following except direct material overhead costs research and development costs direct labor costs
-
The least-squares line usually does not go through all the sample data points (x, y). In fact, for a specified x value from a data pair (x, y), there is usually a difference between the predicted...
-
Everdeen, Inc., has a 100-day operating cycle. If its average age of inventory is 35 days, how long is its average collection period? If its average payment period is 30 days, what is its cash...
-
William Green recently acquired the financial controlling interest of Importers and Wholesalers, Inc., importers and distributors of cutlery. In his review of the duties of employees, Mr. Green...
-
Arna, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3 years follow. Year Ended December 31 Inventory at Current-year Cost Price Index 2009 $19,750 100 2010...
-
E. Chrissy's Vases is a boutique selling artisan vases. The boutique purchases several styles of vases from one source. The cost of the vases to the boutique is $10 each. All other costs for...
-
The current price of a stock is $86, and three-month call options with a strike price of $87 currently sell for $4.30. An investor who feels that the price of the stock will increase is trying to...
-
ROI, comparisons of three companies. (CMA, adapted) Return on investment (ROI is often expressed as follows: 1. What advantages are there in the breakdown of the computation into two separate...
-
ROI and RI. (D. Kleespie, adapted) The Outdoor Sports Company produces a wide variety of outdoor sports equipment. Its newest division, Golf Technology, manufactures and sells a single product:...
-
Stacey Womack is considering the implementation of an incentive wage plan to increase productivity in her small manufacturing plant. The plant is nonunion, and employees have been compensated with...
-
On 31 March 1981, Estelle acquired a patent with a 45-year life at a cost of 21,000. The patent was valued at 22,000 on 31 March 1982 and Estelle sold the patent on 31 March 2021 for 13,000. Compute...
-
On 9 May 2012, Steven bought 2,000 ordinary shares in Vexacon plc for 8,000. On 28 November 2016, he bought 500 ordinary shares in the company for 2,500. In March 2021, Danshore plc made a takeover...
-
A company has the following results for the four years to 31 March 2021: Calculate the total repayment of corporation tax (with interest) to which the company is entitled, assuming that: (a) all...
-
In 2013, Shaun bought 20% of the ordinary shares of an unlisted trading company. The shares cost 140,000. He owned the shares until January 2021 when he gave all the shares to a friend. On the date...
-
Calculate the CGT payable in relation to each of the following disposals, assuming in each case that the annual exemption is fully utilised against other gains, that there are no allowable losses and...
-
Let \(y \sim \operatorname{Poisson}(\mu)\). (a) If \(\mu=n\) is an integer, show that the normalized variable \(\frac{y-\mu}{\sqrt{\mu}}\) has an asymptotic normal distribution \(N(0,1)\), i.e.,...
-
Which of the companies has the lowest accounts receivable turnover in the year 20X2? a. Company A. b. Company B. c. Company C. d. CompanyD. 20X1 20X2 Credit Sales Average Receivables Balance $1.0...
-
Use the tabulated electrode potentials to calculate K for the oxidation of copper by H + (at 25 C): Cu(s) + 2 H+ (aq) 2+ Cu+ (aq) + H(8)
-
Brilliant Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Ontario Air. Brilliants fixed costs are $ 36,000 per month. Ontario Air charges passengers $ 1,300...
-
Brilliant Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Ontario Air. Brilliants fixed costs are $ 36,000 per month. Ontario Air charges passengers $ 1,300...
-
Brilliant Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Ontario Air. Brilliants fixed costs are $ 36,000 per month. Ontario Air charges passengers $ 1,300...
-
The following condensed information was reported by Peabody Toys, Incorporated, for 2024 and 2023: Income statement information Net sales Net income Balance sheet information Current assets Property,...
-
A bond with face value of $1,000 has annual coupons, promised coupon rate of 8%, and 5 years to maturity. Investors require an expected return of 5% from this bond. The probability of default is 2%...
-
How does the increasing influence of technology on governance and civic participation affect democratic processes, and what safeguards are necessary to ensure that technology enhances rather than...
Study smarter with the SolutionInn App