H&R Block Inc. provides tax preparation services throughout the United States and other parts of the world.

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H&R Block Inc. provides tax preparation services throughout the United States and other parts of the world. These services are provided through two segments: company-owned offices and franchised operations.
Recent financial information provided by H&R Block for its company-owned and franchised operations is as follows (in millions):
Company-Owned Franchised Operations $ 335 Revenues $2,651 Income from operations 86 617 Total assets 586 3,930

a. Use the DuPont formula to determine the return on investment for each business divisions. Round whole percents to one decimal place and investment turnover to two decimal places.
Division______________ Return on Investment
Company-Owned.................................%
Franchised Operations...........................%
b. Determine the residual income for each division, assuming a minimum acceptable income of 15% of total assets. Round minimal acceptable return to the nearest million dollars.
Division _______________________Residual income
Company-Owned.................................$millions
Franchised Operations...........................$millions
c. The Franchised Operations (FO) segment has the return on investment, which is mainly the result of a investment turnover.

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Related Book For  answer-question

Managerial Accounting

ISBN: 978-1337270595

14th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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