please.. see attached.

Performance Evaluation and Decentralization

• Return on Investment
• Margin
• Turnover
• Residual income
• Economic Value Added

ACCTG 404 Lesson 11 Assignment: Performance Evaluation and Decentralization Directions: Complete the following calculations in an Excel file. Be sure to show and label your work for full credit. This assignment is worth 50 points. The grading rubric may be previewed in the Performance Evaluation and Decentralization Drop Box. A company has two divisions with the following information: Division 1 Sales: 2,000,000 Operating Income: 400,000 Assets Jan. 1: 4,000,000 Assets Dec. 31: 4,500,000 Division 2 Sales: 1,000,000 Operating Income: 300,000 Assets Jan. 1: 2,000,000 Assets Dec. 31: 2,200,000 The Minimum required rate of return for the company for all of its divisions is 30% and its cost of capital is 15%. The company has an income tax rate of 40%. Calculate the following ratios for both divisions: a. b. c. d. e. Return on Investment Margin Turnover Residual income Economic Value Added Division 1 Sales: Operating Income: Assets Jan. 1: Assets Dec. 31: Minimum Required Rate of Return Cost of Capital Income Tax Rate a. ROI b. Margin c. Turnover d. Residual Income 2,000,000 400,000 4,000,000 4,500,000 0.30 0.15 0.40 Division 2 Sales: Operating Income: Assets Jan. 1: Assets Dec. 31: 1,000,000 300,000 2,000,000 2,200,000