Bentz Co Has Two Divisions, a and B

question 100

Short Answer

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:

COV

Coefficient of Variation, a standardized measure of the dispersion of a probability distribution or frequency distribution.

Bivariate Distribution

A probability distribution describing two random variables and how their probabilities are distributed over different ranges of values.

Variance

A statistical measurement of the spread between numbers in a data set, indicating how far each number in the set is from the mean.

Covariance

A measure that indicates the extent to which two variables change together, indicating the direction of their linear relationship.