Question: FlashCo segments its company into four distinct divisions. The net revenues, operating profit, and total assets for these divisions are disclosed in the footnotes to

FlashCo segments its company into four distinct divisions. The net revenues, operating profit, and total assets for these divisions are disclosed in the footnotes to FlashCo€™s ­consolidated financial statements and the following presented information:
Notes to Consolidated Financial Statements
Note
1- Basis of Presentation and Our Divisions:
We manufacture, market, and sell a variety of products through our divisions, including furniture and fixtures for the home, office, stores, and health- care facilities. The accounting policies are the same for each division, as indicated in Note 2.

FlashCo segments its company into four distinct divisions. The net

Corporate includes the costs of our corporate headquarters, centrally managed initiatives, and certain gains and losses that cannot be accurately allocated to specific divisions, such as derivative gains and losses.


FlashCo segments its company into four distinct divisions. The net


FlashCo segments its company into four distinct divisions. The net

Corporate assets consist of cash, short- term investments, and property, plant, and equipment. The corporate property, plant, and equipment includes the headquarters building, equipment within, and the surrounding property.

Requirements
1. What are FlashCo€™s four business divisions? Make a table listing each division, its net revenues, operating profit, and total assets.
2. Use the data you collected in Requirement 1 to calculate each division€™s sales margin. Interpret your results.
3. Use the data you collected in Requirement 1 to calculate each division€™s capital turn-over. Interpret your results.
4. Use the data you collected in Requirement 1 to calculate each division€™s ROI. Interpret your results.
5. Can you calculate RI using the data presented? Why or whynot?

Net Revenue Operating Profit 20142013 2012 2014 2013 2012 Home furnishings 10,500 9400 9000 $2,625 $2,350 $1,800 Office furniture9,000 8,100 7,800 1,800 1,620 ,560 Store displas. 12,100 10,900 10,400 1,210 ,070 1,010 Health-care 1500 1350 1250 furnishings..1 495 470 450 Total division$33,100 $29,750 $28,450 $6,130 $5,510 $4,820 (320)(200or Corporate Total 0(280) (235) $33,100 $29,750 $28,450 $5.810 $5,230$4,585 Amortization of Intangible Depreciation and Other Amortization 2014 15 78 70 2013 2012 2014 2013 2012 Home furnishings Office furniture Store displays 1010 440 430 73 63 435 270 400 275 73 65 295 495 furshingsFO Total division CorporatoTO Total 32 $163 $148 $150 $1,260 $1,180 $1,137 19 $163 148 $150 $1275 $1200 $1156 30 35 20 Total Assets Capital Spending 2014na 2013201220142013 2012 510 520 480 6,000 5,400 5,200 520 350 295 11,000 9,800 9,40 8 685550 Home furnishings 6250 5,000 4,500 Office furniture.... Store display1 Health-care furnishings$ Total division Corporate1,770 5,330 3,530 Total 40 $23,875 $20,625 $19,475 $1,920 $1,590 $1,365 85 $25,645 $25,955 $23,005 $2,115 $1,790 $1,450 625 425 375 35 35 195 200

Step by Step Solution

3.44 Rating (189 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Req 1 Millions of dollars Net Revenue Operating Profit Total Assets Home furnishings 10500 2625 6250 Office furniture 9000 1800 6000 Store displays 12... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

322-B-M-A-P-E (1507).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!