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Please solve for a thumbs up! Requirement 1. Calculate each division's ROI. First enter the formula, then calculate the ROI for each division. (Enter the

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Please solve for a thumbs up!

Requirement 1. Calculate each division's ROI. First enter the formula, then calculate the ROI for each division. (Enter the ROI as a percent rounded to the nearest hundredth of a percentage, x.x+x.3 Roquirement 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 rounded to the nearest hundredth of a percentage, x.x%. Interpret your results. The (5) Division is more profitable on each dollar of sales. Roquirement 3. Calculate each division's capital tumover. Interpret your results. First enter the formula, then caloulate the capital turnover for each division. (Round to two decimal places.) The (B) Division is more e4licient in generating sales with its assets. Requirement 4. Use the expanded ROI formula to confrm your results from Requirement 1. Interpret your results. First enter the expanded ROI formula, then calculate the ROI for each division. (Enter the ROI as a perpent rounded to the nearest hundredth of a percentage, x.xx.3 The Consumer Division's profitability on each dollar of sales is (11) than the Paint Stores Division's profitability. However, the Paint Store Division's efficiency is significantly (12) than the Consumer Division's efficiency. These results cause the Paint Stores Division's ROOI to be (13) the Consumer Division's FuOI. Requirement 5. Calculate each division's Fi. Interpret your cesults and offer recommendations for any division with negative Ri. First enter the formula, then caloulate the Ril for each division. (Enter the armount in thousands. Use parentheses or a minus sign for negative residual incomes.) Paint Stores Inferpret your results and offer recommendations for any division with negative Pi. (17) meeting management's target rate of retum. The (18) should work on improving its (19) . Improving this may help the division achieve positive residual inoome. Requirement 6. 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. Most companies use the (20) asset balance since the income used in the ROI caloulation is earned over the year. Management must also decide whether they wish to use the gross book value of assets or the net book value of assets. The (21) book value is often used because it is easlly pulled from the balance sheet. However, ROI using that value! artificilly rise over time due to (22) Requirement 7 . Describe some of the factors that management considers when setting its minimum target rate of return. Requirement B. Explain why some frms prefer to use RI rather than fol for performance measurement. Ril does a betier job of (29) Roquirement 9. Explain why budget versus actual performance reports are insufficient for evaluating the performance of investment centers Ilwestment centers are responsible for (30) Rudget versus actual performance reports are insufficient because they do not measure (31) 1: Data Table The company is segmented into five divisions: Paint Stores (branded retail location), Consumer (paint sold through stores such as Home Depot and Lowe's), Aufomotive (sales to auto manufacturers), Inbernational, and Administration. The following is selected lypothetical divisional information for the company's tao largest divisions: Paint Stores and Consumer (in thousands of dollars). 2: Requirements Round all calculations to two decimal places. 1. Calculate each division's ROI. 2. Calculate each division's sales margin. Interpret your cesults. 3. Cakulate each division's capital turnover. Interpret your results. 4. Use the expanded ROI formula to confrm your resuls from Requirement 1. Interpret your results. 5. Calculate each division's Ril. Interpret your results and offer recommendations for any division with negative Ri. 6. Total asset data were provided in this problem. It you were to gather this information from an annual report, how would you measure tatal assets? Describe your measurement choices and some of the pros and cons of those choices. 7. Descrbe some of the factors that management considers when setting its minimum target rate of retum. 8. Explain why some firms preder to use RI rather than ROI for performanoe measurement. 9. Explain why budget versus actual performance reports are insufficient for evaluating the performance of investment centers

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