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The United World Corporation has three subsidiaries.

	Computers		Magazines		Cable TV
Sales		$20,330,000		$5,020,000		$4,460,000
Net income (after taxes)		1,520,000		573,000		382,000
Assets		8,930,000		8,840,000		3,260,000

a-1. Compute the return on sales. (Do not round intermediate calculations. Round the final answers to 2 decimal places.)

	Return on sales
Computers	%
Magazines	%
Cable TV	%

a-2. Which division has the lowest return on sales?

multiple choice 1

• computers

• cable TV

• magazines

b-1. Compute the ROA. (Round the final answers to 2 decimal places.)

	Return on assets
Computers	%
Magazines	%
Cable TV	%

b-2. Which division has the highest ROA?

multiple choice 2

• cable TV

• computers

• magazines

c. Compute the ROA for the entire corporation. (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Return on assets %

d. If the $3,260,000 investment in the cable TV division is sold and redeployed in the computer subsidiary at the same rate of ROA currently achieved in the computer division, what will be the new ROA for the entire corporation? (Round the final answer to 2 decimal places.)

New return on assets %

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