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Ryan Alcoa allows its divisions to operate as autonomous units. The operating data for 2015 follow: Revenues Accounts receivable Operating assets Net operating income Taxable
Ryan Alcoa allows its divisions to operate as autonomous units. The operating data for 2015 follow: Revenues Accounts receivable Operating assets Net operating income Taxable income Plows $2,250,000 800,000 1,000,000 220,000 165,000 Tractors $500,000 152,500 400,000 60,000 90,000 Combines $4,800,000 1,435,000 1,750,000 480,000 385,000 Required: a. Compute the investment turnover for each division.( 2 Points) b. Compute the return on sales for each division. .(2 Points) c. Compute the return on investment for each division (2 Points) d. Which division manager is doing best? Why? ( 2 Points) e. What other factors should be included when evaluating the managers?( 2 Points)
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