Operating Profit Margin, Asset Turnover, ROI, and RI.

Financial information for Web Design, LLP, for the most recent fiscal year appears as follows. All dollar amounts are in thousands.

Required:

1. 1. Calculate the average operating assets for each division. (Hint: land held for sale and investments in Global, Inc., are not operating assets.)
   2. Calculate the operating profit margin, asset turnover, and ROI for each division.
   3. Calculate RI for each division assuming a cost of capital rate of 12 percent.
   4. What does the information from requirements b and c tell us about each division?

Web Design, LLP Segmented Income Statements for the Current Fiscal Year (dollar amounts are in thousands) Sales Cost of goods sold Gross margin Allocated overhead (from corporate) Selling and administrative expenses Operating income Income tax expense (30\% rate) Net income Maintenance Division $9,000 $6,3002,700 1,800 $1,1503,350 345$805 Web Design, LLP Segmented Balance Sheets at End of Most Recent Fiscal Year (dollar amounts are in thousands) Assets Cash Accounts receivable Inventory Total current assets Property, plant and equipment (net) Investment in Global, Inc. Land (held for sale) Total assets Liabilities and owners' equity Accounts payable Other current liabilities Total current liabilities Long-term liabilities Total liabilities Total owners' equity Total liabilities and owners' equity Design Division Ending Beginning Balance Balance $400$390 Maintenance Division Ending Beginning Balance Balance $1,100$1,150