H&R Block Inc. provides tax preparation services throughout the United States and other parts of the world.
Question:
Recent financial information provided by H&R Block for its company-owned and franchised operations is as follows (in millions):
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.
Step by Step Answer:
Managerial Accounting
ISBN: 978-1337270595
14th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac