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### Horngren'S Financial And Managerial Accounting

Book edition 6th
Author(s) Tracie L. Miller-Nobles, Brenda L. Mattison
Pages 992 pages
ISBN 9780134486833

# Consider the following data, and determine which of the corporate divisions is more profitable. Explain your reasoning. Domestic International Operating income $10,000,000$ 11,000,000 Average total assets 24,000,000 32,000,000

The return on assets of domestic division is 41.67%, international division is 34.38% and domestic division is better than international division.

See the step by step solution

## Step 3 : Checking the profitability of the divisions

The domestic division is more profitable as the return on assets of the domestic division is more than that of the international division as computed in steps 2 and step 3.