Question: please write a correct answer sets on replacement cost basis. Problem 5: Osaka Corporation is a decentralized manufacturing company with three producing divisions. Following is

please write a correct answer
sets on replacement cost basis. Problem 5: Osaka Corporation is a decentralized manufacturing company with three producing divisions. Following is a schedule of sales and cost data for the accounting year just completed: Sales Division A Division B Division C 2,25,000 90,000 6,00,000 Cost of goods sold Operating expenses Current assets 1,05,000 37,500 3,60,000 90,000 30,000 1,50,000 Land held for investment 75,000 1,20,000 30,000 1,20,000 Fixed assets (gross) Accumulated depreciation Current liabilities 1,80,000 1,50,000 7,50,000 15,000 5,25,000 90,000 15,000 22,500 60,000 Long-term liabilities 22,500 37,500 Required: Compute the following: (a) Net income for each division (b) ROI using gross assets, (c) ROI using net assets, (d) ROI using gross assets employed, (e) Residual income using a target income of 15% of net assets, (f) Income as a percentage of sales, (g) Prepare a chart ranking the divisions for each of the performance measuresStep by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
