# 23-3 A - Rate of return on = Income from operations x Sales...

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Problem 23-3A Name: Section: Enter the appropriate amount in the shaded cells below. A red asterisk (*) will appear to the right of an incorrect amount in the outlined cells. 1. HI-GROWTH INVESTMENTS INC. Divisional Income Statements For the Year Ended June 30, 2008 Sales \$1,250,000 \$750,000 \$1,500,000 Operating expenses 750,000 682,500 1,170,000 Income from operations \$500,000 \$67,500 \$330,000 2. Rate of return on = Profit margin x Investment turnover investment (ROI)

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Unformatted text preview: Rate of return on = Income from operations x Sales investment (ROI) Sales Invested Assets Retail Division: ROI = \$500,000 x \$1,250,000 = 16.00% \$1,250,000 \$3,125,000 Electronic Borkerage Division: ROI = \$67,500 x \$750,000 = 27.00% \$750,000 \$250,000 Investment Banking Division: ROI = \$330,000 x \$1,500,000 = 16.50% \$1,500,000 \$2,000,000 3. Retail Division Electronic Brokerage Division Investment Banking Division...
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## This note was uploaded on 04/15/2008 for the course ACCT 120 taught by Professor Os during the Spring '08 term at Illinois Central.

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23-3 A - Rate of return on = Income from operations x Sales...

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