Name:
Section:
Score: 24%
*Since some answer boxes are correct when left blank (zero), the beginning score is greater than 0%.
Key Code:
1.
Budget Actual Over Budget
Under
Budget
Customer service salaries
Insurance and property taxes
2.
For the Month Ended August 31, 20Y6
Problem 14-1
Instructions
2
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SNEED INDUSTRIES COMPANY
Budget Performance Report—Director, Crane Division
Name:
Section:
Score: See student sheet for student’s score
Scoring:
*Since some answer boxes are correct when left blank, the beginning score is greater than 0%.
1.
Budget Actual Over Budget
Under
Budget
Customer service salaries 250,000$ 368,000$ 118,000$ –$
Insurance and property taxes 50,000 49,100 – 900
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For the Month Ended August 31, 20Y6
ON
Problem 14-1
SOLUTION
SNEED INDUSTRIES COMPANY
Budget Performance Report—Director, Crane Division
Instructions
Answers are entered in the cells with gray backgrounds.
Name:
Section:
Score: 0%
Key Code:
1.
Air Rail Truck
Revenue
Operating expenses
Income from operations before
Supporting schedules:
Air Rail Truck Total
Number of customer contacts
Number of hours billed
=
2. Income from
Operations Revenues Percentage
Air Division:
3. Summary of message to CEO:
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A-ONE FREIGHT INC.
Problem 14-2
Instructions
2
Divisional Income Statements
For the Quarter Ended December 31, 20Y3
=
Name:
Section:
Score: See student sheet for student’s score
Scoring:
1.
Air Rail Truck
Revenue 5,000,000$ 6,000,000$ 9,000,000$
Operating expenses 4,100,000 4,900,000 7,555,000
Income from operations before
Supporting schedules:
Air Rail Truck Total
=
Number of customer contacts 1,500 4,500 16,000 22,000
Number of hours billed 900 2,400 6,700 10,000
2. Income from
Operations Revenues Percentage
Air Division: 753,300$ 5,000,000$ = 15.1%
3. Summary of message to CEO:
Problem 14-2
SOLUTION
Instructions
Divisional Income Statements
ON
This method is weak because it does not incorporate differences between divisions regarding required asset
inv
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A-ONE FREIGHT INC.
=
For the Quarter Ended December 31, 20Y3
Name:
Section:
Score: 0%
Key Code:
1.
Breakfast
Division
Cookies
Division
Frozen
Desserts
Division
Sales
2.
Rate of Return on
Investment (ROI)
Rate of Return on
investment (ROI)
3.
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PASTRY INC.
Problem 14-3
Instructions
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2
Divisional Income Statements
For the Year Ended April 30, 20Y7
=
Profit Margin Investment Turnover
Sales
Sales
Invested Assets
=
Income from Operations
Name:
Section:
Score: See student sheet for student’s score
Scoring:
1.
Breakfast
Division
Cookies
Division
Frozen
Desserts
Division
Sales 19,800,000$ 8,550,000$ ##########
2.
Rate of Return on
Investment (ROI)
Rate of Return on
investment (ROI)
3.
Problem 14-3
SOLUTION
Sales
Sales
Invested Assets
Instructions
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ON
PASTRY INC.
Divisional Income Statements
For the Year Ended April 30, 20Y7
=
Profit Margin Investment Turnover
=
Income from Operations
Name:
Section:
Score: 0%
Key Code:
1.
Rate of Return on
Investment (ROI)
2.
Proposal 1 Proposal 2 Proposal 3
Sales
Cost of goods sold
3.
Rate of Return on
=
Investment (ROI)
Profit Margin Investment Turnover
Profit Margin Investment Turnover
Estimated Income Statements
For the Year Ended December 31, 20Y2
=
Problem 14-4
Instructions
2
=
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AMAZING RIDES INC.—JET SKI DIVISION
=
4.
Proposal meeting the required rate of return:
5.
= Profit Margin Required Investment Turnover
Rate of Return on Investment (ROI)
=
Proposal 3: ROI
=
x
Name:
Section:
Score: See student sheet for student’s score
Scoring:
1.
Rate of Return on
Investment (ROI)
2.
Proposal 1 Proposal 2 Proposal 3
Sales 12,000,000$ 12,000,000$ 9,720,000$
Cost of goods sold 7,464,000 6,720,000 5,800,000
3.
Rate of Return on
Investment (ROI)
Rate of Return on
investment (ROI)
Income from Operations
=
=
For the Year Ended December 31, 20Y2
Profit Margin Investment Turnover
Invested Assets
=
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Profit Margin Investment Turnover
Sales
Problem 14-4
SOLUTION
Instructions
ON
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AMAZING RIDES INC.—JET SKI DIVISION
Estimated Income Statements
Sales
=
Income from Operations
Sales
Sales
Invested Assets
$1,263,600 $9,720,000
$9,720,000 $10,800,000
4.
Proposal meeting the required rate of return: Proposal 2
5.
= Profit Margin Required Investment Turnover
Rate of Return on Investment (ROI)
Proposal 3: ROI
=
=
11.70%
Name:
Section:
Score: 0%
Key Code:
1.
2.
Rate of Return on
=
=
Investment (ROI)
Rate of Return on
Investment (ROI)
3.
On-Road
Bike Division
Off-Road
Bike Division
Income from operations
4.
For the Year Ended December 31, 20Y9
MONTANA BIKE COMPANY
Problem 14-5
Instructions
2
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=
Profit Margin Investment Turnover
=
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Divisional Income Statements
Bike Division
Bike Division
Name:
Section:
Score: See student sheet for student’s score
Scoring:
1.
On-Road
Bike Division
Off-Road
Bike Division
Sales 10,500,000$ 8,000,000$
2.
Rate of Return on
Investment (ROI)
Rate of Return on
Investment (ROI)
3.
On-Road
Bike Division
Off-Road
Bike Division
Income from operations 1,260,000$ 840,000$
4.
Sales
Invested Assets
Problem 14-5
SOLUTION
Instructions
ON
=
Profit Margin Investment Turnover
=
Income from Operations
MONTANA BIKE COMPANY
Divisional Income Statements
For the Year Ended December 31, 20Y9
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Sales