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Question: Learning World Inc. has two divisions: Test

Learning World Inc. has two divisions: Test Preparation and Language Arts. Results (in millions) for the past three years are partially displayed here:
Learning World Inc. has two divisions: Test Preparation and Language Arts. Results (in millions) for the past three years are partially displayed here:


Required:
1. Complete the table by filling in the blanks.
2. Use the DuPont method of profitability analysis to explain changes in the operating-income-to-total assets ratios over the 2013 through 2015 period for each division and for Learning World as a whole. Comment on the results.

Required: 1. Complete the table by filling in the blanks. 2. Use the DuPont method of profitability analysis to explain changes in the operating-income-to-total assets ratios over the 2013 through 2015 period for each division and for Learning World as a whole. Comment on the results.





Transcribed Image Text:

A B E G Operating Incomel Operating Incomel Operating Revenuel Operating Operating Total Operating Income Total 1 Revenue Assets Revenue Total Assets Assets Test Preparation Division 2013 2 $ 680 $ 7,960 $1,920 ? ? ? 3 4 2014 840 ? ? 10% ? 42% 2015 1,160 ? ? 11% ? Language Arts Department 2013 $ 2,360 3,000 $ 620 $1,280 1,800 2,340 7 ? ? ? 8. 2014 ? 22% ? ? 2015 ? ? 2 25% 10 Learning World Inc. 11 2013 $1,300 $10,320 $3,200 ? ? ? 12 2014 ? ? ? ? ? ? 13 2015 ? ? ? ? ? ?


2.99

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