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valina [46]
2 years ago
13

The crunchy granola company is a diversified food company that specializes in all natural foods. the company has three operating

divisions organized as investment centers. condensed data taken from the records of the three divisions for the year ended june 30, 20y7, are as follows: cerealdivision snack cakedivision retailbakeries divisionsales $25,000,000 $8,000,000 $9,750,000 cost of goods sold 16,670,000 5,575,000 6,795,000 operating expenses 7,330,000 1,945,000 2,272,500 invested assets 10,000,000 4,000,000 6,500,000 the management of the crunchy granola company is evaluating each division as a basis for planning a future expansion of operations.required:question content area1. prepare condensed divisional income statements for the three divisions, assuming that there were no support department allocations.2. using the dupont formula for return on investment, compute the profit margin, investment turnover, and return on investment for each division. if required, round your answers to one decimal place.3. when faced with limited funds for expansion, management should consider an expansion of the division first.
Business
1 answer:
gogolik [260]2 years ago
8 0

Based on the given entries, the condensed divisional income statements are:

                                    Cereal Division    Snack Cake       Retail Bakeries

Sales                               25,000,000          8,000,000           9,750,000

Cost of Goods             <u>   (16,670,000)         (5,575,000)          (6,795,000)</u>

Sold  

Gross Profit                     8,330,000            2,425,000            2,955,000

Operating Expenses    <u>  (7,330,000)          (1,945,000)          (2,272,500)</u>

Operating income      <u>    (1,000,000)            (480,000)           (682,500)   </u>

The profit margins, Investment turnover, and ROI.

                                          Cereal Division   Snack Cake   Retail Bakeries

Profit Margin                             4                          6                       7

Investment Turnover               2.5                        2                      12

ROI                                              7                        1.5                     10.5

The management should go with Snack Cake as it has the highest Profit Margin.

<h3>What are the matrics and ratios for Crunchy Granola Company?</h3>

The condensed income statements will show all the divisions and their operating incomes in one statement as shown above.

The profit margin can be found as:

= Operating income / Sales x 100

The Return on Investment (ROI) is:

= Operating income / Invested assets  x 100

Investment turnover can be found as:

= Sales / Invested assets x 100

Find out more on Return on Investment at brainly.com/question/26445145.

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On January 1 of the current year, Barton Corporation issued 10% bonds with a face value of $200,000. The bonds are sold for $191
Verdich [7]

Answer:

a. $21,800

Explanation:

The discoun of issuance of the bond is amortized over the period until maturity. Total Interest expesne on a discounted bond is the sum of the coupon payment and the amortization of the discount amount.

Coupon payment = $200,000 x 10% = $20,000 per year

Discount on the bond = $200,000 - $191,000 = $9,000

Discount amotized per year = $9,000 / 5 = $1,800

Total Interest Expense = Coupon Payment + Amortization of Discount

Total Interest Expense = 20,000 + 1800 = $21,800

5 0
3 years ago
For the composite method, the composite...(a)rate is the total cost divided by the total annual depreciation.(b)rate is the tota
kotykmax [81]

Answer:

The correct answer is letter "C": life is the total cost divided by the total annual depreciation.

Explanation:

The composite depreciation method uses the straight-line depreciation to rate and average the loss of value in given assets. It divides the useful life figure by the total depreciable cost to arrive at the total depreciation per year. It is helpful to determine the depreciation in a complete class of assets.

3 0
3 years ago
Jamison's gross tax liability is $7,200. Jamison had $2,625 of available credits and he had $4,400 of taxes withheld by his empl
mina [271]

Answer:

The answer is: Jamison has $175 in taxes due.

Explanation:

To determine the amount of taxes that Jamison still has to pay, we can use the following formula:

Taxes due = tax liability - (taxes withheld by employer + tax credits)

Taxes due = $7,200 - ($4,400 + $2,625) = $7,200 - $7,025 = $175

Jamison has $175 in taxes due.

7 0
3 years ago
What are operating expenses?
skad [1K]

Answer:

see below

Explanation:

Operating expenses are the cost a business incurs while engaging in its normal business operations. They are the costs not directly be attached to the production process. A business incurs operating expenses in managing it day to day activities. They exclude one time expenses such as judgment cost,  accounts adjustments, and other non-recurring costs.

Operating expenses are classified into administrative, selling, and general expenses. Businesses cannot avoid operating expenses; hence the management should strive to keep them as low as possible. Examples of operating expenses include rent, salaries,  employee benefits, transport,  depreciation, repairs, taxes, sales commissions, amortization, and pension contributions.

3 0
3 years ago
-8/3 + 7/2 =?<br><br>por favor ayúdenme.​
Triss [41]

Answer:

-5/6

Explanation:

Fist find the common denominators of the two

-  \frac{16}{6}  +  \frac{21}{6}

Then you that minus sign in front of the fraction that means its negative

although theres an addition sign where subtracting fractions.

given it's in this order the fraction will be negative

-  \frac{16}{6}  +  \frac{21}{6}  =  - \frac{5}{6}

:D

6 0
3 years ago
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