Question: Bentz Co. has two divisions, A and B. Invested assets and condensed income statement data for each division for the year ended December 31, are
Bentz Co. has two divisions, A and B. Invested assets and condensed income statement data for each division for the year ended December 31, are as follows: Division A Division B Revenues $190,000 $125, 500 Operating expenses 112, 500 92, 750 Service department charges 29, 500 12, 625 Invested assets 225,000 99,000 Prepare condensed income statements for the past year for each division. Using the DuPont formula, determine the profit margin, investment turnover, and rate of return on investment for each division. Round the profit margin percentage to two decimal places and investment turnover to four decimal places
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