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.
Road Mountain
Bike Bike
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
Road Bike Division
Mountain Bike Division
3.
Road Mountain
Bike Bike
Division Division
Income from operations
Minimum acceptable return
Residual income
4.
=
x
=
Income from Operations
Sales
Invested Assets
ROI
=
x
=
x
Problem 24-5B
Name:
Section:
ROI
Score:
Key Code:
Instructions
=
0%
[Key essay answer here]
[Key code here]
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FREE RIDE BIKE COMPANY
Divisional Income Statements
For the Year Ended December 31, 2014
Rate of Return (ROI) on Investment
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.
Road Mountain
Bike Bike
Division Division
Sales 1,728,000$ 1,760,000$
Cost of goods sold 1,380,000 1,400,000
Score:
Instructions
Answers are entered in the cells with gray backgrounds.
For the Year Ended December 31, 2014
FREE RIDE BIKE COMPANY
Divisional Income Statements
Problem 24-5B
Name:
Solution
Section:
ON
Cells with non-gray backgrounds are protected and cannot be edited.