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Data Table Division 3 reported the tolowing data EB (Click the icon to viaw the Division 3 data.) Read the requirements Speedy Company has three
Data Table Division 3 reported the tolowing data EB (Click the icon to viaw the Division 3 data.) Read the requirements Speedy Company has three divisions and expects each dvision1o earn a 19% target rate of return The company had the following results last year IClick the ican to view the results.) 1,536,900 16,100,000 32,700,000 Operating income Average total assets Net sales $1 Requirement 1. Campute Divson 3's pront margin raio, asset burnower ratio, and ROl. Round your results to three decimal places Interpret t Begn by computing Division 3 s proft margn raio. Enter the prott magn ratio as a percentage rounded to one decimal place, XX%) the resuts in relation to the other two dmsians - Profit margin ratio Print Done bu Now compute Division 3s asset bunover ratio (Enter the asset tumover ratio in decimal form to three deaimal places, X.xxx) - Asset turnover rabo m. Enter the ROI as a percentage rounded o one decimal place.xx Na t, compute D sion 3's ROI Enter any prevously calculated amounts in the same for at 35 you prevously emered ROI Division 3 | | maong iap managemert's expectations lts ROI is | ran the 19% target rate of return, Divison 3s profit margin ratio is 2's. Th means that Or son 3 ganaraong sales from ts average toal assets as emiciently as Division 1 and Di sion 3 is effio ent than Onsion 2 Divisian management Requirement 2. Compute and inberpret Division 3s R First, compute Divison 3's RI. (Use parentheses or a minus sign for a negative RI.) than the other two dnisians. Additionally, the asset turnover ratio is than Division than Divisian 1's and i Data Table Profit margin ratio Division Asset turnover ratio ROI 18.4% 18.7% RI 7.1% 2.722 1.844 The Requirement 3. What can you conclude based on the financial pertormance KPls? Both investment canter inancial performance KPls ( RI confrms the ROI resuts: The divisionmeeting management's target rate of return. Print Done point to the same condusion: Division 3meeting fnancial expoctations. Top management's and staksholders' expectations are the dvision is from any ist or enter any number in the input fields and then continue to the next
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