Siciliano Ltd, from exercise 14.9, requires a minimum return on investment of 16%. Required Calculate the residual
Question:
Siciliano Ltd, from exercise 14.9, requires a minimum return on investment of 16%.
Required
Calculate the residual profit for the Phone Screen and the Computer Screen divisions of Siciliano Ltd using the data from Exercise 14.9
Data from Exercise 14.9
Phone Screens and Computer Screens are two divisions operated as investment centres of Siciliano Ltd. Management wants to know which of the two earned the highest return on investment for the year ended 30 June 2017. The details for each division for the year ended 30 June 2017 were as follows:
Phone Screens | Computer Screens | ||
Sales revenue Interest expense Profit before tax Assets 1 July 2016 Assets 30 June 2017 | $2000000 40000 240000 1000000 1500000 | $2500000 80000 360000 1 800000 1600000 |
Step by Step Answer:
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett