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Bentz Co Has Two Divisions, a and B

question 156

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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:? 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 return on investment for each division. Round the profit margin percentage to two decimal places and investment turnover to four decimal places. (a)Prepare condensed income statements for the past year for each division.
(b)Using the DuPont formula, determine the profit margin, investment turnover, and return on investment for each division. Round the profit margin percentage to two decimal places and investment turnover to four decimal places.


Definitions:

Aggregate Supply

The total supply of goods and services that firms in an economy are willing and able to sell at a given price level in a given time period.

Consumption Expenditures

The total amount spent by households on goods and services for personal use within a specified period.

Investment Expenditures

Spending by businesses on capital goods, and by households on new homes.

Unemployment

A situation where individuals who are capable of working and willing to work do not find suitable employment.

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