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.
0%
[Key essay answer here]
[Key code here]
Answers are entered in the cells with gray backgrounds.
Cells with non-gray backgrounds are protected and cannot be edited.
PAVONE COMPANY
Divisional Income Statements
For the Year Ended December 31, 2014
Rate of Return (ROI) on Investment
=
ROI
Score:
Key Code:
Instructions
Problem 24-5A
Name:
Section:
ROI
=
x
=
x
Income from Operations
=
x
=
Sales
Invested Assets
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:
Problem 24-5A
Name:
Solution
Section:
ON
Cells with non-gray backgrounds are protected and cannot be edited.
Score:
Instructions
Answers are entered in the cells with gray backgrounds.
For the Year Ended December 31, 2014
PAVONE COMPANY
Divisional Income Statements
Sales
Invested Assets
=
x
Rate of Return (ROI) on Investment
Income from Operations