Problem:
The top management at MedConnect, is attempting to recover from a flood that destroyed some of their accounting records. The main computer system was also severely damaged. Assume that MedConnect uses net income when calculating Return on Assets. The following information was salvaged:
Alpha Division Beta Division
Total Revenue $5,000,000 (?)
Net Income $3,000,000 $1,300,000
Total Assets (?) (?)
Return on Assets 0.25 0.15
Total Margin (?) 0.10
Total Asset Turnover (?) (?)
1. What is the value of the total assets belonging to the Alpha Division?
2. What is the Alpha Division's total margin?
3. What is the Alpha Division's total asset turnover?
4. What was total revenue for the Beta Division?
5. What is the value of the total assets belonging to the Beta Division?