An asterisk (*) will appear to the right of an incorrect entry in the income statement and above or below
elements in the equations. The essay answer will not be graded.
1.
Business Consumer
Division Division
Sales
Cost of goods sold
Gross profit
Operating expenses
Income from operations
2.
Rate of Return (ROI) on Investment = Profit Margin x Investment Turnover
Sales
Business Division:
Consumer Division:
3.
Business Consumer
Division Division
Income from operations
Minimum acceptable return
Residual income
4.
Invested Assets
ROI
=
x
=
x
ROI
=
0%
Score:
Key Code:
Instructions
=
Income from Operations
Sales
Problem 23(8)-5A
Name:
Section:
[Key essay answer here]
[Key code here]
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PAVONE COMPANY
Divisional Income Statements
For the Year Ended December 31, 2014
Rate of Return (ROI) on Investment
x
=
An asterisk (*) will appear to the right of an incorrect entry in the income statement and above or below
elements in the equations. The essay answer will not be graded.
1.
Business Consumer
Division Division
Sales 2,500,000$ 2,550,000$
2.
Rate of Return (ROI) on Investment = Profit Margin x Investment Turnover
Sales
Business Division:
$250,000 $2,500,000
3.
Business Consumer
Division Division
Income from operations 250,000$ 357,000$
Rate of Return (ROI) on Investment
Invested Assets
=
x
Income from Operations
Sales
Score:
Instructions
Answers are entered in the cells with gray backgrounds.
For the Year Ended December 31, 2014
PAVONE COMPANY
Divisional Income Statements
Problem 23-5A
Name:
Solution
Section:
ON
Cells with non-gray backgrounds are protected and cannot be edited.