Question 41 (Managerial Accounting)

muu juu . S vestul Elding Whether to accept and puaal, return on investment or residual income? Explain. 41. Operating Profit Margin, Asset Turnover, and Return on Investment (ROI). Financial information for Amador Sports, Inc., for the most recent fiscal year appears as follows. All dollar amounts are in thousands. Required: a. Calculate average operating assets for each division. (Hint: land held for sale is not an operating asset followAll der b. Calculate operating profit margin, asset turnover, and return on investment for each division. c. What does this information tell us about each division? marating Profit Margin, Asset Turnover. Return on Investment (ROD), and Residual income RO for Livingston Tech Support, Inc., for the most recent fiscal year appear PROBLEMS (continued) 41. Operating Profit Margin, Asset Turnover, and ROI a. Average operating assets are calculated below. Note that land held for sale is not an operating asset, and thus must be deducted from total assets to find operating assets. (Dollar amounts are in thousands.) Basketball Division Ending Beginning Balance Balance Football Division Ending Beginning Balance Balance Total assets Less: Land held for sale Total operating assets Average operating assets inlilerleme Basketball Division Operating profit margin Operating Income Football Division Sales $1,300 $10,000 13.00% Asset turnover - Sales Average Operating Assets ** 95 S $10,000 $7,310 1.37 ROI - Operating Profit Margin * Asset Turnover 13.00% From segmented income statements. ** From requirement a. 17.81% ASS muu juu . S vestul Elding Whether to accept and puaal, return on investment or residual income? Explain. 41. Operating Profit Margin, Asset Turnover, and Return on Investment (ROI). Financial information for Amador Sports, Inc., for the most recent fiscal year appears as follows. All dollar amounts are in thousands. Required: a. Calculate average operating assets for each division. (Hint: land held for sale is not an operating asset followAll der b. Calculate operating profit margin, asset turnover, and return on investment for each division. c. What does this information tell us about each division? marating Profit Margin, Asset Turnover. Return on Investment (ROD), and Residual income RO for Livingston Tech Support, Inc., for the most recent fiscal year appear PROBLEMS (continued) 41. Operating Profit Margin, Asset Turnover, and ROI a. Average operating assets are calculated below. Note that land held for sale is not an operating asset, and thus must be deducted from total assets to find operating assets. (Dollar amounts are in thousands.) Basketball Division Ending Beginning Balance Balance Football Division Ending Beginning Balance Balance Total assets Less: Land held for sale Total operating assets Average operating assets inlilerleme Basketball Division Operating profit margin Operating Income Football Division Sales $1,300 $10,000 13.00% Asset turnover - Sales Average Operating Assets ** 95 S $10,000 $7,310 1.37 ROI - Operating Profit Margin * Asset Turnover 13.00% From segmented income statements. ** From requirement a. 17.81% ASS