Gilliam 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 each division.

Transcribed Image Text:

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