/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} 29BP_b The Global Products Corporation ... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 2: 29BP_b (page 84)

The Global Products Corporation has three subsidiaries.

Medical supplies

Heavy machinery

Electronics

Sales

\(20,040,000

\)5,980,000

$4,730,000

Net Income (after tax)

1,700,000

592,000

402,000

Assets

8,340,000

8,760,000

3,570,000

b. Which division has the highest return on assets?

Short Answer

Expert verified

The return on assets of the Medical supplies is the highest.

Step by step solution

01

Return on assets of medical supplies

Returnonassets=NetincomeTotalassets=$1,700,000$8,340,000=20.38%

02

Return on assets of heavy machinery

Returnonassets=NetincomeTotalassets=$592,000$8,760,000=6.76%

03

Return on assets of Electronics

Returnonassets=NetincomeTotalassets=$402,000$3,570,000=11.26%

Hence, Medical supplies has the higher return on assets.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Nova Electrics anticipates cash flow from operating activities of \(6 million in 20X1. It will need to spend \)1.2 million on capital investments to remain

competitive within the industry. Common stock dividends are projected at

\(.4 million and preferred stock dividends at \).55 million.

a. What is the firm鈥檚 projected free cash flow for the year 20X1?

b. What does the concept of free cash flow represent?

Using the income statement for Times Mirror and Glass Co., compute the following ratios:

The total assets for this company equal \(80,000. Set up the equation for the Du Pont system of ratio analysis, and compute c, d, and e.

e. Return on assets (investment).

Times mirror and glass company

Sales

\)126,000

Less: Cost of goods sold

93,000

Gross profit

\(33,000

Less: selling and administrative expenses

11,000

Lease Expenses

4,000

Operating profit*

\)18,000

Less: Interest expenses

3,000

Earning before taxes

\(15,000

Less: Taxes (30%)

4,500

Earning after taxes

\)10,500

*equal income before interest and taxes

Database Systems is considering expansion into a new product line. Assets to support expansion will cost \(380,000. It is estimated that Database can generate\)1,410,000 in annual sales, with an 8 percent profit margin. What would net income and return on assets (investment) be for the year?

Arrange the following income statement items so they are in the proper order of an income statement:

Taxes

Earning per share

Share Outstanding

Earning before taxes

Interest Expense

Cost of goods sold

Depreciation Expense

Earning after taxes

Preferred Stcok dividends

Earning available to common stockholders

Sales

Selling and administrative expense

Gross profit

What is the difference between accumulated depreciation and depreciation expense? How are they related?
See all solutions

Recommended explanations on Business Studies Textbooks

Change Management

Read Explanation

Business Development

Read Explanation

Finance Literacy (Business Studies)

Read Explanation

Managerial Economics

Read Explanation

Strategic Analysis

Read Explanation

Sales in Business

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.