ACCOUNT-What is the return on sales for each subsidiary
by ella | Aug 20, 2025 | Business
| The Global Products Corporation has three subsidiaries. |
|
Medical
Supplies |
Heavy
Machinery |
Electronics |
| Sales |
$ |
20,820,000 |
$ |
5,720,000 |
$ |
4,890,000 |
| Net income (after taxes) |
|
1,890,000 |
|
597,000 |
|
344,000 |
| Assets |
|
8,370,000 |
|
8,380,000 |
|
3,140,000 |
| a-1. |
What is the return on sales for each subsidiary? (Input your answers as a percent rounded to 2 decimal places.)
|
|
Return on Sales |
| Medical Supplies |
% |
| Heavy Machinery |
% |
| Electronics |
% |
| a-2. |
Which subsidiary has the lowest return on sales? |
|
|
|
| Medical Supplies |
| Electronics |
| Heavy Machinery |
|
| b-1. |
What is the return on assets for each subsidiary? (Input your answers as a percent rounded to 2 decimal places.)
|
|
Return on Assets |
| Medical Supplies |
% |
| Heavy Machinery |
% |
| Electronics |
% |
| b-2. |
Which subsidiary has the highest return on assets? |
|
|
|
| Medical Supplies |
| Heavy Machinery |
| Electronics |
|
| c. |
Compute the return on assets for the entire corporation. (Input your answer as a percent rounded to 2 decimal places.)
|
| d. |
If the $8,380,000 investment in the heavy machinery division is sold off and redeployed in the medical supplies subsidiary at the same rate of return on assets currently achieved in the medical supplies division, what will be the new return on assets for the entire corporation? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
|
References
