Frank's Fixtures has two divisions: the Plumbing Division and the Electrical Division. Following are their operating data

Question:

Frank's Fixtures has two divisions: the Plumbing Division and the Electrical Division. Following are their operating data for the year:

Plumbing Electrical Division Division Revenue Operating profit. Total assets Stockholders' equity Long-term debt S125,00

Required:
1. Calculate the ROI for each division (use total assets).
2. Interpretive Question: On the basis of this return, which division appears to have the better performance?Why?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

See More Books

Question Posted: Dec 28, 2011 03:38 AM

See More Questions

1. Which theme appears to have more appeal overall? Justify your answer. 2. How does the appeal of the campaign differ between men and women? What is your basis for that conclusion? 3. Are the...
Miscavige corporation has two divisions the beta division and the alpha division the beta division has sales of $270,000, variable expenses of $143,100, and traceable fixed expenses of $67,300 the...
Answer the following questions on the basis of this information for a single firm: total cost of capital = $1000; price paid for labor = $12 per labor unit; price paid for raw materials = $4 per...
IFRS requires the following: (a) Ending inventory is written up and down to net realizable value each reporting period. (b) Ending inventory is written down to net realizable value but cannot be...
There are two errors in the following trial balance: (1) One account has been placed in the wrong column, and (2) There is a transposition error in the balance of the L. Bourque, Capital account....
You have learned about the events surrounding DNA replication and the central dogma. Identify the steps associated with these processes that will be adversely affected in the following scenarios. a....
On 1 July 2025 Costopoulos, Hashmi and Torcello decided to enter into a partnership agreement, some of the relevant information is as follows. 1. Costopoulos contributed $$27200$ cash, inventory...
Presented below is an incomplete income statement and an incomplete comparative balance sheet of Cotte Corporation. Additional information:1. The receivables turnover for 2011 is 10 times.2. All...
12. If the velocity-time graph has the shape AMB, what would be the shape of the corresponding acceleration-time graph? (A) a (B) (C) A (D) a A M B time(t)
Tim Collett practices law under the business title Tim Collett, Attorney at Law, Inc. During November, his law practice engaged in the following transactions: Nov 1 Sold $70,000 of common stock to...
Macro Data Corporation's three divisions had the following operating data during the year: Required: 1. Compute the contribution margin for each division. 2. Compute the segment margin for each...
The following information applies to the two sales divisions of Ward Enterprises: Required: 1. Calculate each division's revenue. 2. Calculate each division's asset turnover ratio assuming that...
For the following data: a. Find the regression equation for predicting Y from X. b. Calculate the Pearson correlation for these data. Use r2 and SSY to compute SSresidual and the standard error of...
For both scenarios what type of ppe could be useful in deterring temperature extremes and what theories of any could be applied to an accident or incident involving temperature extremes? 1. Put...
Thomas Taylor is planning to invest $29,000 today in a mutual fund that will provide a return of 8 percent each year. What will be the value of the investment in 10 years? (If you solve this problem...
Real-World Case 21.2 Monica's best friend Shanna lives out of state and her mom just had a breast biopsy. Shanna calls Monica upset because they have not received the results of the biopsy. Shanna...
Consider the following graph: a d b ge h 1. Can the nodes of the graph be partitioned to create a Bi-Partite Graph? Why or why not? 2. Give a sequence of nodes that comprises and Euler circuit...
Does Texas require a special license for the distribution of alcoholic beverages at private events? Does Texas state law forbid distribution of alcohol to those attending a private event who are...
As a supermarket operator, would you hold more safety inventory for a newly introduced detergent or for an existing detergent? Why?
Show that, given a maximum flow in a network with m edges, a minimum cut of N can be computed in O(m) time.
If someone sues a university under 504 or the ADA for its failure to provide equal participation opportunities to individuals with disabilities, the decision will probably turn on whether the...
You are to devise an investment strategy to enable you to accumulate $1,000,000 by age 65. Start by making some assumptions about your salary. Next compute the percent of your salary that you will be...
Nokia (www.Nokia.com), which is a leading manufacturer of mobile devices and services, along with Research In Motion and Apple are competitors in the global marketplace. Key figures for Nokia follow...
Use the following selected data from Business Solutions income statement for the three months ended March 31, 2012, and from its March 31, 2012, balance sheet to complete the requirements below:...
Solve 1. f(x) = ln(2x-1) 2. f(x)=(x-1) 5x3+x 3. f(x) = e+x = 3 4. f(x) = e 5. f(x)=(3x -2x+1) 6. f(x)=2x-2x+3 7. f(x)= 8. f(x) = 1 2x-1 1 (4x + x)
4. Assume that country A's saving level is fixed at SA = 10 and country B's saving level is fixed at SB 25. Except the saving level, these two countries share the same economic parameters. In every...
How do advanced query planning strategies such as multi-stage optimization, bushy tree optimization, and join order enumeration address the combinatorial explosion of query plan search space,...

Frank's Fixtures has two divisions: the Plumbing Division and the Electrical Division. Following are their operating data

Question:

Plumbing Electrical Division Division Revenue Operating profit. Total assets Stockholders' equity Long-term debt S125,000 S180,000 15,000 75,000 18,000 3 34,500 25,000 23,000

Step by Step Answer:

ROI 1 2 On the basis of ROI it appears that the El...View the full answer

Accounting concepts and applications

Students also viewed these Managerial Accounting questions