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Calculating Average Operating Assets, Margin, Turnover, Return on Investment (ROI) Forchen, Inc., provided the following information for two of its divisions for last year: Small
Calculating Average Operating Assets, Margin, Turnover, Return on Investment (ROI) Forchen, Inc., provided the following information for two of its divisions for last year: Small Appliances Cleaning Products Division Division Sales $34,670,000 $31,320,000 Operating income 2,773,600 1,252,800 Operating assets, January 1 6,394,000 5,600,000 Operating assets, December 31 7,474,000 6,000,000 Required: 1. For the Small Appliances Division, calculate: a. Average operating assets $ 6,934,000 b. Margin c. Turnover d. Return on investm nent (ROI) 2. For the Cleaning Products Division, calculate: Round your turnover answer to one decimal place. Enter ROI a percentage rounded to one decimal place. a percentage ou a. Average operating assets b. Margin c. Turnover OI OB OPICS = 15 OS OS d. Return on investment (ROI) 3. What if operating income for the Small Appliances Division was $2,000,000? How would that affect average operating assets? Margin? Turnover? ROI? Calculate any changed ratios. When required, round the percent to four decimal places before converting to a percentage. For example, .88349 would be rounded to .8835 and entered as 88.35. Enter "O", where ever required. Average operating assets Unaffected Margin Unaffec Turnover Return on investment (ROI)
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