In: Accounting
Mary’s Auto Shop Inc. allows its divisions to operate as autonomous units. Their results for the current year were as follows:
Sport |
Terrain |
City |
|
Revenues |
$2,400,000 |
$997,000 |
$6,660,000 |
Current assets |
292,000 |
92,000 |
622,000 |
Capital assets |
870,000 |
660,000 |
1,590,000 |
Current liabilities |
100,000 |
100,000 |
500,000 |
Net operating income |
230,000 |
40,000 |
600,000 |
After-tax income |
184,000 |
32,000 |
480,000 |
Weighted average cost of capital |
10% |
10% |
10% |
Required:
For each division compute (to two decimal) the: