Use the following information for the Exercises below. (The following information applies to the questions displayed below) Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center) Investment Center Electronics Sporting goods Sales Income $56,100,000 $2,805,000 25,000,000 2,000,000 Average Invested Assets $16,500,000 12,500,000 Exercise 22-11 Computing margin and turnover; department efficiency LO A2 Compute profit margin and investment turnover for each department. Which department generates the most net income per dollar of sales? Which department is most efficient at generating sales from average invested assets? Complete this question by entering your answers in the tabs below. Profit Margin Investment Turnover Compute profit margin for each department. Which department generates the most net Income per dollar of sales? Profit Margin Choose Numerator: Choose Denominator: Investment Contor Electronics Sporting Goods Which department generates the most net income per dollar of sales? Profit Margin Profit Margin Profit Margin Investment Turnover Compute Investment turnover for each department. Which department is most efficient at generating sales from average Invested assets? Investment Turnover Investment Chcte Numerator: 1 Choose Denominator: Turnover Investment Center Investment Turnover Electronics Sporting Goods Which department is most efficient at generating sales from average invested assets? (Profit Margin Investment Turner Required information Use the following information for the Exercises below. (The following information applies to the questions displayed below.) A food manufacturer reports the following for two of its divisions for a recent year. is millions) Beverage Cheese Division Division Invested assets, beginning $2,684 $4,477 Invested assets, ending 2,604 4,411 2,692 3,936 Operating income Sales 360 645 Exercise 22-13 Residual income LO A1 Assume that each of the company's divisions has a required rate of return of 6%. Compute residual income for each division (Enter your answers in millions.) (5 millions) Beverage Cheese Targeted retum Target income Residual Income Beverage Cheese Residual income Exercise 22-18 Cash conversion cycle LO A4 Accounts payable, end of year Accounts receivable, net, end of year Inventory, end of year Net sales Cost of goods sold Current Year $ 8,243 27,925 10,544 170,000 84,800 Prior Year $ 12,188 18,218 9,975 119,000 117,000 (1) Use the information above to compute the number of days in the cash conversion cycle for each year. (2) Did the company manage cash more effectively in the current year? Complete this question by entering your answers in the tabs below. year Required 1 Required 2 Use the information above to compute the number of days in the cash conversion cycle for each year. (Use 365 days in Round calculations to the nearest whole day.) Current year Prior year Cash conversion cycle days days Required Required 2 > Exercise 22-18 Cash conversion cycle LO A4 Accounts payable, end of year Accounts receivable, net, end of year Inventory, end of year Net sales Cost of goods sold Current Year $ 8,243 27,925 10,544 170,000 84,000 Prior Year $ 12,188 18,218 9,975 119,000 117,000 (1) Use the information above to compute the number of days in the cash conversion cycle for each year. (2) Did the company manage cash more effectively in the current year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Did the company manage cash more effectively in the current year? ***** *** Did the company manage cash more effectively in the current year?
