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Provide the missing data in the following table for a distributor of martial arts products: (Enter Turnover and ROI answe

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Answer #1

Alpha Division:
Sales = Average operating assets * Turnover
= $490,000 * 5
= $2,450,000

Net operating Income = Sales * Margin
= $2,450,000 * 7%
= $171,500

ROI = Net Income / Average operating assets
= $171,500 / $490,000
= 35%

Bravo Division:
Average operating assets = Net Income / ROI
= $45,150 / 0.35
= $129,000

Margin = Net Income / Sales
= $45,150 / $322,500
= 14%

Turnover = Sales / Average operating assets
= $322,500 / $129,000
= 2.5

Charlie:
Sales = Net Income / Margin
= $66,560 / 0.13
= $512,000

Average operating assets = Net Income / ROI
= $66,560 / 0.26
= $256,000

Turnover = Sales / Average operating assets
= $512,000 / $256,000
= 2

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