Locate the company$$s most recent $10$K Annual Report. Europe and Frito Lay North America segments of PepsiCo and calculate margin, turnover, ROI, and residual income for the last two years.

Provide three examples of how improvements in margin or turnover can improve segment and company ROI and residual income?

Sales

Operating income

Segment assets: name current year

Segment assets: name prior year

Average operating assets:

$($Current year OA $+$ prior year OA$)/2$

Margin $[$Operating income $-$: Sales$]$

Turnover $[$Sales $-$: Average operating assets$]$

ROI $[$Margin $\backslash$times Turnover$]$

Average operating assets

Operating income

Minimum required return $[$Assume $12\%\backslash$times Average operating asset$]$

Residual income