Question
Fred Inc. has the following financial results for the years 2019 through 2021 for its three regional divisions: 2019 2020 2021 Revenue Southwest $ 14,550
Fred Inc. has the following financial results for the years 2019 through 2021 for its three regional divisions:
| 2019 | 2020 | 2021 | ||||||
Revenue |
|
|
|
|
|
|
|
|
|
Southwest | $ | 14,550 |
| $ | 21,650 |
| $ | 25,650 |
|
Midwest |
| 6,350 |
|
| 6,650 |
|
| 6,850 | |
Southeast |
| 12,050 |
|
| 12,650 |
|
| 12,950 |
|
Total | $ | 32,950 |
| $ | 40,950 |
| $ | 45,450 |
|
Net Operating Income |
|
|
|
|
|
|
|
|
|
Southwest | $ | 750 |
| $ | 850 |
| $ | 1,000 |
|
Midwest |
| 900 |
|
| 1,250 |
|
| 1,200 |
|
Southeast |
| 650 |
|
| 850 |
|
| 1,250 |
|
Total | $ | 2,300 |
| $ | 2,950 |
| $ | 3,450 |
|
Average Total Operating Assets |
|
|
|
|
|
|
|
|
|
Southwest | $ | 13,650 |
| $ | 13,850 |
| $ | 16,450 |
|
Midwest |
| 4,350 |
|
| 3,850 |
|
| 3,850 |
|
Southeast |
| 4,950 |
|
| 5,250 |
|
| 5,250 |
|
Total | $ | 22,950 |
| $ | 22,950 |
| $ | 25,550 |
|
Required:
Calculate 1) return on sales (ROS)(i.e., Margin), 2) asset turnover (AT), and 3) return on investment (ROI) for each division and also for the firm as a whole for each of the three years 2019, 2020, and 2021 and show all your work.
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