Extreme Sports Company makes snowboards, downhill skis, cross-country skis, skateboards, surfboards, and in-line skates. The company has found it beneficial to split operations into two divisions based on the climate required for the sport Snow Sports and Non Snow Sports The following divisional information is available for the past year (Click the icon to view the information) 1. Enter the formula then calculate each divisions ROI (Enter the ROI as a percent Founded to the nearest anth of a percent XX ) ROI Snow Soorts divis 0 Data Table Valabi to vie nts thel Snow Sports Non-Snow Sports Sales Operating Income Total Assets Current Liabilities $ 5,100,000 $ 968,000 $ 4,400,000 $ 440,000 $ 8,100,000 $ 833,000 $ 3,400,000 $ 715,000 Extreme's management has specified a target 13% rate of return i Requirements 1. Calculate each division's ROI 2. Top management has extra funds to invest. Which division will most likely receive those funds? Why? 3. Can you explain why one division's ROI is higher? How could management gain more insight? Print Done BE! (Click the icon to view the information ) Read the requirements F ROI -- Snow Sports Non-Snow Sports 96 Choose from any list or enter any number in the input fields and then continue to the next question, ROI % Snow Sports Non-Snow Sports Operating income Sales Total assets Choose from any list or ente Total current liabilities fields and then continue to the next question. 2. Top management has extra funds to invest Which division will most likely receive those funds? Why? will most likely receive those funds because it has The Choose from any list or enter any number in the input fields and then continue to the next question 2. Top management has extra funds to invest. Which division will most likely receive those funds? Why? The will most likely receive those funds because it has Choo non-snow sports division nber in the input fields and then continue to the next question snow sports division 19 donar information is operations into two divisions based on the climate required for the sport Snow Spo year (Click the icon to view the information Read the requirements a higher ROI a lower ROI greater operating income greater sales greater total assets 2. Top management has extra funds to invest Which division will most likely receiv will most likely receive those funds because it has lower liabilities The Choose from any list or enter any number in the input fields and then continue to the next question (Click the icon to view the information.) Read the requirements. 3. Can you explain why one division's ROI is higher? How could management gain more insight? Choose from any list or enter any number in the input fields and then continue to the next question. W Sports and Non-Sr Non-snow sports division has greater operating income Non-snow sports division has greater sales Snow sports division has less liabilities There is not enough information to explain why one ROI is greater. How could management gain more insight? How could management gain more insight
