The summary of financial statements for division A is given below. Statement of Financial Position Statement...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The summary of financial statements for division A is given below. Statement of Financial Position Statement of Profit or Loss RM'000 RM'000 Non-current assets 1,500 Revenue 4,000 Current assets 600 Operating cost 3,600 Total assets 2,100 Operating profit 400 Interest paid 70 Divisional equity 1,000 Profit before tax 330 Long term borrowings 700 Current liabilities 400 Total equity and liabilities 2,100 The cost of capital for the division is estimated at 12% each year Annual rate of return on long term loans is 10% All decision concerning the division's capital structure are taken by central management. Required to calculate the: a. Divisional return on investment b. Net profit margin c. Turnover ratio d. Residual income The summary of financial statements for division A is given below. Statement of Financial Position Statement of Profit or Loss RM'000 RM'000 Non-current assets 1,500 Revenue 4,000 Current assets 600 Operating cost 3,600 Total assets 2,100 Operating profit 400 Interest paid 70 Divisional equity 1,000 Profit before tax 330 Long term borrowings 700 Current liabilities 400 Total equity and liabilities 2,100 The cost of capital for the division is estimated at 12% each year Annual rate of return on long term loans is 10% All decision concerning the division's capital structure are taken by central management. Required to calculate the: a. Divisional return on investment b. Net profit margin c. Turnover ratio d. Residual income
Expert Answer:
Answer rating: 100% (QA)
a Divisional Return on Investment Profit Before Tax Total Assets Divis... View the full answer
Related Book For
Financial Accounting: A Business Process Approach
ISBN: 978-0136115274
3rd edition
Authors: Jane L. Reimers
Posted Date:
Students also viewed these accounting questions
-
The last two years of financial statements for Blunt Industries are as follows: Blunt Industries Balance Sheets, December 31, 2015 and 2016 Blunt Industries Income Statements for the Years Ended...
-
The last two years of financial statements for Pamplin, Inc., are as follows: Pamplin, Inc. Balance Sheets, December 31, 2015 and 2016 ($thousands) Pamplin, Inc. Income Statements for the Years Ended...
-
A set of financial statements for Gator Company follows: Requirement Fill in the missing amounts (indicated with questionmarks). Gator Company Income Statement For the Year Ended December 31, 2012...
-
In Problems 5994, solve each inequality. Express your answer using set notation or interval notation. Graph the solution set. 2x2 3 + x
-
The U. S. Census Bureau compiles data on family income and summarizes its findings in Current Population Reports. The table below is a frequency distribution of the annual incomes for a random sample...
-
Specify the minimum type(s) of operation(s) the database must support (remote request, remote transaction, distributed transaction, or distributed request) to perform the following operations: At...
-
The owner of an ice cream store asks 75 people which flavor of ice cream they prefer. Thirteen of them say strawberry, 11 say chocolate, 24 say vanilla, and 27 provide a flavor other than strawberry,...
-
Manufacturing is developing a sales and production plan as part of its master budgeting process. Following are the projected monthly sales, which occur uniformly during each month, for the upcoming...
-
The Clarkson Coffee Company produces two grades of coffee, the Superb blend and the Run-of-the-Mill blend. Three types of coffee beans are combined to produce these blends. The availability and cost...
-
Find a current computer ad in a magazine or newspaper or online. Identify each of the featured items in the ad, show its position in the system block diagram of Figure 11.1, explain how it operates,...
-
For this assignment, select a recent criminal case in your city or local geographical area from the past six months. Consider how you would investigate this case. Write a 34-page paper in which you:...
-
-Explain the OS design principles in terms of CPU Scheduling, Memory Management, and Deadlocks. -What are the CPU Scheduling, Memory Management algorithms, and Deadlock strategy used by the OS? -What...
-
An archer shoots an arrow parallel to the ground from a height of 1.9 meters. The arrow flies at 100 meters per second. How long after releasing the arrow will the arrow hit the ground? Make your...
-
China has a fixed exchange rate system. During COVID-19, many European countries output production had significantly decreased due to lockdown rules. Thus, China was facing a temporary increase in...
-
Apex Health Insurance has a retention limit of $ 50,000 for a single policy in the excess of loss risk reinsurance treaty.. Apex Health enters into an excess-of-loss per risk treaty with Geneva Re....
-
Why is the Commercial Bank of Australia v Amadio (1983) 151 CLR 447 an important case in contract law? According to Australian Legal Review.
-
The degree to which a consumer has the ability to make decisions and the feeling of control over those decisions and their consequences is known as O a. Agency O b. Control OC Obsessive-compulsive...
-
For each of the following reactions, express the equilibrium constant: a) H20 (I) H2 (g) + 02 (g) Ke = 1.0x107 b) Fe2 (g) 2F (g) Ke= 4.9 x 10-21 c) C (s) + O2 (g) d) H2 (g) + C2H4 (g) C2H6 (g) Ke =...
-
What changes does Sarbanes-Oxley require for a companys board of directors?
-
Using the data from SE5-14B, calculate the cost of goods sold and the cost of the ending inventory using the LIFO periodic cost flow assumption. In SE5-14B, Calculate the cost of goods sold and the...
-
The following balances appeared in the general ledger for Hacky Sak Corporation at fiscal year end September 30, 2011: Selling and administrative expenses .........$ 15,000 Other revenues and...
-
Based on the photographs in Figure 26.13, in which segment(s) is the Antp gene normally expressed? Figure 26.13: (a) Normal fly (b) Antennapedia mutant
-
The bush baby, a small African mammal, is a remarkable jumper. Although only about 8 inches long, it can jump, from a standing start, straight up to a height of over 7 feet! Use the particle model to...
-
Your friend Travis claims to have set the new world speed record for riding a unicycle. His top speed, he says, was 55 m/s. Do you believe him? Explain.
Study smarter with the SolutionInn App