Please help me answer this whole question, I trued it alresdy 5x and keep getting it wrong.
I also included the drop downs to help answer the question. For some the drop down is the same to chose from.
Big Kid Paints is a national paint manufacturer and retailer. (Click the icon to view additional information.) Assume that management has specified a 22% target rate of return. Read the requirements. Rola Data Table The company is segmented into five divisions: Paint Stores (branded retail location), Consumer (paint sold through stores such as Sears, Home Depot, and Lowe's), Automotive (sales to auto manufacturers), International, and Administration. The following is selected hypothetical divisional information for the company's two largest divisions: Paint lts. the sa Stores and Consumer (in thousands of dollars). Sales Operating Income Total Assets Paint Stores 4,000,000 440,000 Consumer.. 1,200,000 180,000 1,250,000 Print Done ults. Round all calculations to two 1. Calculate each division's RO. 2. Calculate each division's sales margin. Interpret your results. 3. Calculate each division's capital turnover. Interpret your results. 4. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results. 5. Calculate each division's Ri. Interpret your results and offer recommendations for any division with negative RI. Total asset data were provided in this problem. If you were to gather this information from an annual report, how would you measure total assets? Describe your measurement choices and some of the pros and cons of those choices. 6. 7. Describe some of the factors that management considers when setting its minimum target rate of return. 8. Explain why some firms prefer to use RI rather than ROI for performance measurement. 9. Explain why budget versus actual performance reports are insufficient for evaluating the performance of investment centers. Print Done Capital turnover sand then continue to the next question. (Enter the ROI as a percent rounded to the nearest hundredth of a percentage, xxx%) ROI Paint Stores Consumer Requirement 1. Calculate each division's ROI. First enter the formula, then calculate the ROI for each division. (Enter the ROl as a percent rounded to the ne ROI Paint Stores ConsumerOperating income Requirement 2 Total assets 1% Sales ales margin. Interpret your results. nargin for each division. (Enter the sales margin as a percent roun Total current liabilities Enter the formula, then caloulate the sales margin for each division. (Enter the sales Paint Stores Consumer The Requirement 2. Calculate each division's salos margin. Interpret your results. Enter the formula, then calculate the sales margin for each division. (Enter the sales margin as a percent rounded to the Sales margin Paint Stores Consumer Operating income Interpret your re Total assets The 1% Sales Total current liabilities le on each dollar of sales. Requirement 2. Calculate each division's sales margin. Interpret your results. Enter the formula, then calculate the sales margin for each division. (Enter the sales margin as a percent Sales margin Paint Stores Consumer Interpret your results. The Requ First Division is more profitable on each dollar of sales. each division's capital turnover. Interpret your results. Consumer n calculate the capital turnover for each division. (Round to two decimal places Paint Stores -Capital turnover Requirement 3. Calculate each division's capital turnover. Interpret your results. First enter the formula, then calculate the capital turnover for oach division. (Round to two decimal places.) Capital turnover Paint Stores Consumer The imes imes Division is more efficient in generating sales with its assets. to two decimal places.) Capital turnover times Consumer Operating imes Sales Total assets Total current liabilities The in generating sales with its assets. mula to confirm vour results from Requirement 1. Interpret vour results Requirement 3. Calculate each division's capital turnover. I your results. First enter the formula, then calculate the capital turnover for each division. (Round to two decimal places.) -Capital turnover Paint Stores imes Consumer imes The Division is more effcient in generating sales with its assets. Division is more efficient in generating sales with its assets. Requ xpanded ROl formula to confirm your results from Requirement 1. Interpret your Consumer First Ol formula, then calculate the ROI for each division. (Enter the ROI as a percent Paint Stores ROI Frst enter the expanded ROI formula, then calculate the ROI for each division Enter the ROI as a po ent rounded to the nearest hundredth of a percentage, XXX ROI Consumer The Consumer Division's profitability on each dollar of sales isthan the Paint Stores Division's proftability. However, the Paint Store Division's efficiency is cause the Paint Stores Division's ROI to be | the Consumer Division's ROI. ulrement 4. Use the expanded ROI formula to confirm your rosults from Requirement 1. Interpret your results. First enter the expanded ROI formula, then calculate the ROl for oach division. (Enter the ROl as a percent rounded to the ROI Paint Stores Consumer The Consumer Division's pro WACC 1% Effective tax rate Sales margin sales is | | than the Paint Stores Division's profitability. However, the ROI The Consumer Division's profitability on each dollar of sales Sales cause the Paint Stores Division's ROI to be Total assets OI. rement 4. Use the expanded ROI formula to confirm your results from Requiremont 1. Interpret your results. First enter the expanded ROI fomula, then calculato the ROl for each division. (Enter the ROl as a percent rounded to the nearest hundred the ROl as a percent rounded to the nearest hundredt ROI %x 1% Paint Stores Consumer The Consumer Division's profitability on each dollar of sales isthan the Paint Stores Division's profitability. However, the Paint Stor cause the Paint Stores Division's ROI to be Requirement 5. Calculate each division's RI. Interpret your res First enter the formula, then calculate the RI for each division. th ision's ROI. higher mendations for any division with negative Rl. lower in thousands. Use parentheses or a minus sign for negati he Paint Stores Division's RO to bo the Consumer Division's RO. Requirement 4. Use the expanded ROI formula to confirm your rosults from Requirement 1. Interpret your results. First enter the expanded ROl formula, then calculato the ROI for each division. (Enter the ROl as a percent rounded to the nearest hu ROI Paint Stores Consumer %x The Consumer Division's profitability on each dollar of sales is than the Paint Stores Division's profitability. However, the Pa cause the Paint Stores Division's ROI to be! the Consumer Division's ROI. Requirement 5. Calculate each division's R First enter the formula, then calculate the Ri nd offer recommendations for any division with negative RI the amount in thousands. Use parentheses or a minus sign for higher than RI lower thanx 5. RI Consumer Requirement 5. Calculate each division's Ri. Interpret your results and offer recommendations for any division with negative R First enter the formula, then calculate the RI for each division. (Enter the amount in thousands. Use parentheses or a minus sign for nega RI Paint Stores Consumer Interpret your res Operating income dations for any division with negative RI. Current liabilities Sales Total assets management's target rate of return. The should work on improving its Current liabilities Sales th Requirement 5. Calculate each division's RI. Interpret your results and offer recommendations for any division with negative RI. First enter the formula, then calculate the RI for each division. (Enter the amount in thousands. Uso parentheses or a minus sign for negative residue )- RI Paint Stores x Effective tax rate Target rate of return Consumer Interpret your results and offer recommendations for any division with negative F WACC Requirement s. Calculate each division's Ri. Interprot your results and offer recommondations for any division with negative Rl. First enter the formula, then calculate the RI for oach division. (Enter the amount in thousands. Use parentheses or a minus sign f RI Paint Stores Consumer Interpret your results and offer recommendations for any division with negative RI. managemaents targt nto ofrotun eodwok onimpoving meeting management's target rate of return. The vided in this problem. If you were to gather this information from an annual report, how would you measur Both divisions are Neither division is Only the Consumer Division is Only the Paint Stores Division is t balance since the income used in the ROI calculation is earned over the year ey wish to use the gross book value of assets or the net book value of assets. ee.it is easily uled from the balance sheet. However. ROl using that value will artificially rise over time RI report, how would you meas asset balance since the income used in the R If you were to gather this your asset balance since the income used in the ROI calculation is earned over the year. book value of assets or the net book value of assets. used because it value will artificially rise over time due to of the factors that management considers cash balance depreciation notes receivable
