Sunshine Pants 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 Requirement 1. Calculate each division's ROI First enter the formula, then calculate the ROI for each division (Enter the R asa bercent rounded to the nearest hundredth of a percentage Paint Stores Consumer Choose trom any list or enter any number in the input fields and then conte to the next question Sunshine Paints is a national paint manufacturer and retailer E (Click the loon to view additional information) Assume that management has specified a 22% target rate of return Read the requirements 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 rounded to the nearest hundredth Sales margin Paint Stores Choose from any list or enter any number in the input fields and then continue to the next question Sunshine 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 Enter the formula then calculate the sales margin for each division Enter the sales margin as a percent rounded to XXX%) Sales margin Paint Stores Consumer Choose from any list or enter any number in the input fields and then continue to the next question Data Table est hun 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 Stores and Consumer (in thousands of dollars). Sales Operating Income Total Assets Paint Stores . $ 3,880,000 S 465.600 $ 1.552,000 Consumer ..... $ 1,300,000 $ 221,000 $2,600,000 Print Done i Requirements Round all calculations to two decimal places. 1. Calculate each division's ROI. 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 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 Print Done i Requirements percent 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 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 7. Describe some of the factors that management considers when setting its minimum target rate of relum 8. Explain why some firms prefer to use Rl 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 Sunshine 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 Interpret your results. The Division is more profitable on each dollar of sales Regi Consumer each division's capital turnover Interpret your results n calculate the capital turnover for each division (Round to two decimal places.) First Paint Stores Choose from any list or enter any number in the input fields and then continue to the next question Sunshine Paints is a national paint manufacturer and retailer FH (Click the icon to view additional information) Assume that management has specified a 22% target rate of return. Read the requirements Requirement 3. Calculate each division's capital turnover. Interpret your results First enter the formula, then calculate the capital turnover for each division (Round to two decimal places Paint Stores Consumer Capital turnover times times Choose from any list or enter any number in the input fields and then continue to the next question Sunshine 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 retum Read the requirements The Division is more efficient in generating sales with its assets Reqi First XXX Consumer Paint Stores xpanded ROI formula to confirm your results from Requirement 1. Interpret your results Ol formula, then calculate the ROI for each division. Enter the ROI as a percent rounded to the neares Choose from any list or enter any number in the inputs and then continue to the next question Sunshine 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 First enter the expanded ROI formula, then calculate the Rol for each division Enter the ROI X XXX) per r ed to the chofpere Paint Stores Consumer Choose from any list or enter any number in the input fields and then continue to the reduction E lex theo to view and information) Assume that management has socieda 22 target rate of return Read the requirements The Consumer Divers prottably on each dolar olsa the Port Stoms Divister's profility. However. The Paint Store Dodso n y powdy than the Consumer Division's licency These results cause the Paint Stores D on's Hobe Comme Des Requiremena. Coc h ons Rivierpret your results and our commandations for any use these and Choose from any or enter any number in the putem and control the nella me at management has specified a 22 target rate of return Read the requirements Requirement 5. Calculate each division's Interpret your results and offer recommendations for any division with negative Ri. First enter the form , then calculate the RI for each division (Enter the amount thousands separantees oramus sign for negative residual income Pain Stores Consumer Choose from any list of enter any number in the input in and then continue to the next questioni Sunshine Paints a national part manufacturer and retaler Click the icon to view additional Information) Assume that management has specified a 22 target rate of return Read the green Interpret your results and offer recommendations for any division with negative RI. should work on improving its totales Wert w ould you meeting managers were of retam. The ve positive residual income Both divisions are vided in this problem. If you werd to other this formation from one of the pros and cons of those choses Neither divisions Only the Consumer Division is er in the input lies and continue to the next question Only the Paint Stores Division is management how specified 22% target rate of retum Roshe Requirement 6 Total asset data were provided in this problem you were both information from a Describe your measurement choices and some of the pros and cons of those charges report, how would you measure totala ? Most companies use the average asset balance since the income used in the ROI autorisered over the year Management must also decide whether they wish to use the gross book value of assets of the netbook value of assets Choose from any intor enter any number in the input fields and then continue to the next question Asset management has specified a 22% target rate of return Read the requirements Management must also decide whether they wish to use the gross book value of assets or the netbook value of assets book value is often used because it is easily pulled from the balance sheet However, Rol using the value will The folytise over time due to Requirement 7. Describe some of the factors that management considers when setting its minimum target rate of reum Choose from any list or enter any number in the outside and the continue to best question Sunshine 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 retum Read the requirements Requirement 7. Describe some of the factors that management considers when selling its minimum target rate of return Choose from any list or enter any number in the input fields and then continue to the next question Sunshine 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 Requirement. Explain why some firms prefer to use Rl rather than Rol for performance measurement Ridoes a better job of Requirements. Explai Investment centers are focusing on stockholders and creditors tale of retum getting management to make sure the division is probable goal congruence increasing the retum on investment saling the performance of investment centers Budige versus actual performance reports ar Choose from any to ext question Previous Sunshine Paints is a national pain manufacturer and retailer Click the icon to view additional information Assume that management has specified a 22 target rate of retum Ridoes a better job of Requirement. Explan why budget versus actual performance reports are insufficient for evaluating the performance of investment centers Investment centers are responsible for Budget versus ac performance reports sufficient because they do not measure Choose from any store any number in the inputs and then continue to the next