Divisional Income Statement Accounts

Round percentages and the investment turnover to one decimal place.

Divisional income statement accounts. The sections of a multi step income statement include. Identify income statement accounts that you believe are most likely to be misstated and evaluate why the fluctuation or lack thereof is significant. As the trend is nowadays with with many farms there are often a number of diverse income streams under the hood. The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement.

Accounting accounting divisional income statements the following data were summarized from the accounting records for jersey coast construction company for the year ended june 30 20y8. Round your interim calculations to three decimal places if required. Corporate administrative expenses are not considered controllable by the divisions. The divisional income statement of company cs shows an operating income 1 260 000 from winter sports division and an operating income 2 790 000 from summer sports division.

Step 2 prepare divisional income statements for cr division and cl division. Opentuition 13 780 views 24 40 finance for non finance managers. Prepare the divisional income statements for the two divisions. Prepare condensed divisional income statements for the three divisions assuming that there were no service department charges.

Evaluation bad debt expense 148 252 162 344 accounts receivable grew this year while bad debt expenses decreased. These are the expenses that are directly related to operations of the company like selling general and administrative expenses. The revenues cost of goods sold and operating expenses for the two divisions are as follows. Using the dupont formula for return on investment compute the profit margin investment turnover and return on investment for each division.

Commercial division 912 250 commercial division 112 560 residential division 423 675 residential division 67 830 administrative expenses. The p l balance. Each divisional income statement should be dedicated to a single ring fenced enterprise. Although you might have many commercial divisions which sit under your roof for granular control treat them separately.

This section includes total sales the cost of goods sold and the difference between the two which is gross profit. Acca f5 divisional performance measurement return on investment roi residual income ri duration. Cost of goods sold. Compute the transportation department allocation for winter sports division.