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Financial performance measures profit margin x Inv turnover Inv center sales ave assets ave assets sales Residual Income - net income-target Income INSTRUCTIONS: Enter numbers
Financial performance measures profit margin x Inv turnover Inv center sales ave assets ave assets sales Residual Income - net income-target Income INSTRUCTIONS: Enter numbers in blue cells Enter formulas in the yellow cells Enter your narrative analysis in the green cells 1. Compute the return on Assets for each division below Return Net on Investment Center Sales Ave assets Income Investim ent CoExpo machine SAS $22.900.000 Collamatis w 36,925.000 $19.000 10,950.000 Beelamaa DA0000 825.000 200000 2. Assume a target income of 12% of average invested assets. Compute the residual income for each division Coffee Coffee/ Expl Basic machine resso Coffee w/ machine maker er Inder 12% Coffee/Expresso Coffee machine Profit Margin Nelcome Basic Coffee maker 3. If you were the Vice President over the Coffee Machine Division what is your analysis of the three products? Are there products where sales is a concern? If so, what three steps would you take to perform further analysis as to whether or not you
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