Express Company has three divisions and expects each division to earn a Division 3 reported the following data 17% target rate of return. The company had the following results last year (Click the icon to view the Division 3 data) Click the icon to view the results.) Read the requirements Now compute Division 3's asset turnover ratio (Enter the asset turnover ratio in decimal form to three decimal places, XXXX) Asset turnover ratio = Next, compute Division 3's ROI. (Enter any previously calculated amounts in the same format as you previously entered them. Enter the ROI as a percentage rounded to one decimal place, XX%) ROI % 9% Division 3 meeting top management's expectations. Its ROI is than the 17% target rate of return Division 3's profit margin ratio is than the other two divisions. Additionally, the asset turnover ratio is than Division 1's and than Division 2's. This means that Division 3 generating sales from its average total assets as efficiently as Division 1 and Division 3 is efficient than Division 2 Division management n Tit Data Table Profit margin ratio Asset turnover ratio ROI Division 1 7.3% 19.4% 2.086 1.809 ght U Division 2 11.8% 17.3% Print Done f Patien X Data Table 1.414.700 Operating income Average total assets 16,300.000 30,100,000 Net sales revenue Print Done Express Company has three divisions and expects each division to earn a Division 3 reported the followin 17% target rate of return. The company had the following results last year. (Click the icon to view the (Click the icon to view the results.) Read the requirements. Now compute Division 3's asset turnover ratio. (Enter the asset turnover ratio in decimal form to three decimal pla Asset turnover ratio nter any prd sously calculated amounts in the same format as you previously en %.) Average total assets Net sales Operating income Target rate of return ROI 96 not to freturn Now compute Division 3's asset turnover ratio. (Enter the asset turnover ratio in decimal form to three decimal places, Asset turnover ratio in the same format as you previously entered Average total assets Next, compute Division 3's ROI. (Enter a rounded to one decimal place, X.X%.) Net sales Operating income Target rate of return % ROI 96 Next, compute Division 3's ROI. (Enter any previously calculated amounts in the same format as you previously entered them. Enter the ROI as a percentage rounded to one decimal place, XX%) ROI % Profit margin ratio Return on equity management's expectations. Its ROI is than the 17% target rate of return. Division 3's profit margin ratio is 1 Target rate of return dditionally, the asset turnover ratio is than Division 1's and than Division 2's. This means that Division 3 generating sales from its average total assets as efficiently as Division 1 and Division 3 is efficient than Division 2 Division management rounded to one decimal place. X.X%.) al units in the same format as you previously entered them. Enter the Rol as a percentage ROI % % Asset turnover ratio Division 3 meeting top mani Net sales DI is than the 17% target rate of return. Division 3's profit margin ratio is than the other two divisions. Additior Operating income than Division 1's and than Division 2's. This means that Division 3 efficient than Division 2 generating sales from its average total assets as efficiently as Division 1 and Division 3 is Next, compute Division 3's ROI. (Enter any previously calculated amounts rounded to one decimal place, X.X%.) % 11 Division 3 than the ot meeting top management's expectations. Its ROI is is. Additionally, the asset turnover ratio is is from its average total assets as efficiently as Division is not ge Division mi Requirement 2. Compute and inerpret Division 3's RI First, compute Division 3's RI. (Use parentheses or a minus sign for a negative 11 % % vision 3 meeting top management's expectations. Its ROI is an the other two divisions. Additionally, the asset turnover ratio is generating sales from its average total assets as efficiently as than the 17% target rate of return. Division 3's on 1's and than Division 2's higher livision 3 is efficient than Divisid lower Lien mangnoment % Division 3 meeting top management's expectations. Its ROI is than the 17% target rate of return. Division 3's profit margin ratio is than the other two divisions. Additionally, the asset turnover ratio is than Division 1's and than Division 2's. This means that Divish Mgenerating sales from its average total assets as efficiently as Division 1 and Division 3 is efficient than Division 2. higher lower ROI % 11 Sp management's expectations. Its ROI is than the 17% target rate of return. Division 3's p Additionally, the asset turnover ratio is than Division 1's and than Division 2's. Thi om its average total assets as efficiently d Division 3 is efficient than Division higher lower and interpret Division 3's RI. RI (Use parentheses or a minus sign for a negative RI) % expectations. Its ROI is than the 17% target rate of return. Division 3's profit margin ratio sset turnover ratio is than Division 1's and than Division 2's. This means that Div al assets as efficiently as Division 1 and Division 3 is than Division 2 higher lower sion 3's RI meet than the other two divisi generating sales ement is not !. Comput First, compute Division 3'. VO than the 17% target rate of return. Division 3's profit han Division 1's and than Division 2's. This me n 1 and Division 3 is efficient than Division 2. less more ve RL.) Division management hy Requirement 2. Comp First, compute Division needs to consider ways to increase the efficiency with which it uses divisional average total assets and increase profitability should be proud of the results Requirement 3. What can you conclude based on the financial performance KPIs? Both investment center financial performance KPIs ( point to the same conclusion: Division 3 meeting financial expectations. Top management's and stakeholders' expectations are the division is Recall however, that financial performance measures tend to be lag indicators--measuring the results of decisions made in the past the division's manager may currently be implementing new initiatives to the division's future profitability. Lead indicators should be used to project whether such initiatives are pointing the division in the right direction Choose from any list or enter any number in the input fields and then continue to the next question dla OSRL First, compute Division 3's I. (Use parentheses or a minus sign for a negative RI.) - ( % the ROI results: The division Average total assets Net sales Operating income meeting management's target ra you conclude based on the financial performance KPIs? unt First, compute Division 3's RI. (Use parentheses or a minus sign for a negative RI) RI - Profit margin ratio The RI confirms the F ROI Requirement 3. What can you o Target rate of return meeting management's target rate of return lal performance KPIs? Roth Investment center financial performance KPIs point to the same conclusion: Division 3 Requirement 2. Compute and interpret Division 3's RI First, compute Division 3's RI (Use parentheses or a minus sign for a negative RI) * RI % Average total assets The Rl confirms the ROI results: The division Net sales Requirement 3. What can you conclude based on the financial Operating income et rate of return The RI confirms the ROI results: The Requ can you conclude based o negative Both financial performance KPIs positive finan... Top management's and stak however, that financial performance measures tend currently be implementing new initiatives to pointing the division in the right direction. WAT VRV Choose from any list or enter any number in The Rl confirms the ROI results: The division meeting managem Requirement 3. What can you conclude based on the fin ince KPIs? is Both investment center financial performance KPIs ( is not financial expectations. Top managements and stakeholde waps are however, that financial performance measures tend to be lag indicatorsmeasuring the currently be implementing new initiatives to the division's future profitability. Le pointing the division in the right direction. Choose from any list or enter any number in the input fields and then continue to the The VRI confirms the ROI results. The division meeting management's target rate of return Requirement 3. What can you conclude based on the financial performance KPis? Both investment center financial performance KPIs ( [ point to the same conclusion: Division 3 meeting financial expectations. Top managements and stake is v Recall however, that financial performance measures tend t operating income and asset turnover ratio ons made in the past. The division's manager may currently be implementing new initiatives to hould be used to project whether such initiatives are profit margin ratio and target rate of return pointing the division in the right direction Roland RI Choose from any list or enter any number in the input fields and then continue to the next question 2 lude based on the financial performance KPIs? meeting rformance KPIs point to the same conclusion: Division 3 ements and stakeholders' expectations are the division is e measures tend to be lag indicators-measuring the results of decisions made in the past. The division iatives to the division's future profitability. Lead indicators should be used to project whether si rection is y re is not ny number in the input fields and then continue to the next question ased on the financial performance KPIs Both investment center financial performance KPIs | point to the same conclusion: Division 3 meeting financial expectations. Top management's and stakeholders' expectations are the division is Recall however, that financial performance measures tend to be lag indicators-mear cisions made in the past. The division's manager may currently be implementing new initiatives to the division's future prol on point and s should be used to project whether such initiatives are pointing the division in the right direction unrealistic or Choose from any list or enter any number in the input fields and then continue to the next question ncial performance KPIs point to the same conclusion: Division 3 meeting management's and stakeholders' expectations are the division is Recall formance measures tend to be lag indicators-measuring the results of decisions new initiatives to the division's future profitability Lead indicators shoul exceeding all expectations, right direction not currently performing up to par enter any number in the input fields and then continue to the next question, are cial expectations. Top management's and stakeholders' expectations are ever, that financial performance measures tend to be lag indicators-measu ently be implementing new initiatives to the division's future profita ating the division in the right direction. ose from any list or enter any number improve reduce s and then continue