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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 $41,604,000 $23,200,000 Operating income 3,744,360 928,000 Operating assets, January 1 6,394,000 5,600,000 7,474,000 6,000,000 Operating assets, December 31 Required: 1. For the Small Appliances Division, calculate: a. Average operating assets $ 6,934,000 b. Margin 9 % c. Turnover d. ROI 6 54 % 2. For the Cleaning Products Division, calculate: a. Average operating assets $ 5,800,000 b. Margin c. Turnover 4 % 4 d. ROI 16 % 3. What if operating income for the Small Appliances Division was $2,496,240? 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 "0", where ever required. Average operating assets % Margin Turnover Unaffected by Lower by 6 X % Unaffected by 6 X % by 18 % Return on investment (ROI) Lower
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