Bentz Co Has Two Divisions, a and B

question 81

Essay

Bentz Co. has two divisions, A and B. Invested assets and condensed income statement data for each division for the year ended December 31, are as follows: a) Prepare condensed income statements for the past year for each division.
b) Using the DuPont formula, determine the profit margin, investment turnover, and rate of return on investment for each division. Round the profit margin percentage to two decimal places and investment turnover to four decimal places.

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Definitions:

Ending Inventory

The total value of all unsold goods held by a company at the end of an accounting period.

Budgeting

The process of creating a plan to spend your money, forecasting future income and expenses.

Plan For The Future

A strategy or approach devised by an individual or organization to achieve long-term goals or to navigate toward a future position.

Direct Labor Budget

A detailed plan that shows the direct labor-hours required to fulfill the production budget.