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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 Division Cleaning Products Division
Sales $34,670,000 $29,000,000
Operating income 2,773,600 870,000
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 $ fill in the blank 1
b. Margin fill in the blank 2 %
c. Turnover fill in the blank 3
d. Return on investment (ROI) fill in the blank 4 %

2. For the Cleaning Products Division, calculate:

a. Average operating assets $ fill in the blank 5
b. Margin fill in the blank 6 %
c. Turnover fill in the blank 7
d. Return on investment (ROI) fill in the blank 8 %

3. What if operating income for the Small Appliances Division was $1,733,500? 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

HigherLowerUnaffected

by fill in the blank 10%
Margin

HigherLowerUnaffected

by fill in the blank 12%
Turnover

HigherLowerUnaffected

by fill in the blank 14%
Return on investment (ROI)

HigherLowerUnaffected

by fill in the blank 16%

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