Deercreek Corporation presented two years of data for its Sporting Goods Division and its Camping Division.

Required:
1. Compute the ROI and the margin and turnover ratios for each year for the Sporting Goods Division.
2. Compute the ROI and the margin and turnover ratios for each year for the Camping Division.
3. Explain the change in ROI from Year 1 to Year 2 for eachdivision.

Transcribed Image Text:

Sporting Goods Division Tear 1 Year 2 Salcs Operating income Avcragc opcrating asscts $70,000,000 75,000,000 3,000,000 20,000,000 2,800,000 20,000,000 Camping Division Year 1 Year 2 Sales Operating income Average operating assets $24,000,000 $25,000,000 1,000,000 10,000,000 1,200,000 10,000,000