Game, LLP, is evaluating the performance of three divisions: Rock, Scissors, and Paper. Using the data that follow, compute the economic value added by each division, and comment on each division's performance.
|
Rock
|
scissors
|
Paper
|
|
Sales
|
$50,000
|
$50,000
|
$50,000
|
|
After-tax operating income
|
$5,000
|
$5,000
|
$20,000
|
|
Total assets
|
$25,000
|
$12,500
|
$25,000
|
|
Current liabilities
|
$5,000
|
$5,000
|
$5,000
|
|
Cost of capital
|
15%
|
15%
|
15%
|