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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 $29,000,000 Operating income 3,744,360 1,160,000 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 S b. Margin % c. Turnover d. Return on investment (ROI) % 2. For the Cleaning Products Division, calculate: a. Average operating assets S b. Margin % C. Turnover d. Return on investment (ROI) 3. What if operating income for the Small Appliances Division was $2,000,2007 How would that affect average operating assets? Margin? Turnover? RO? 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 .3835 and entered as 89.35. Enter "o", where ever required. Average operating assets by Margin by Turnover by Return on investment (RO) by
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