Homework Answers
| Part-1: - Small Appliance Division |
| a. Average Operating Asset= ( Beg Asset+ Ending Asset)/2 |
| (6394000+7474000)/2=$6934000 |
| b. Margin= Net Income / Sales |
| $2773600/34670000=80% |
| c. Turnover= Sales/ Average OPerating Asset |
| =34670000/6394000=5.42 times |
| d. ROI= Net Operating Income / Average Operatign Asset |
| =$2773600/6934000=40% |
| Part-2: - Cleaning Products Division |
| a. Average Operating Asset= ( Beg Asset+ Ending Asset)/2 |
| (5600000+6000000)/2=$5800000 |
| b. Margin= Net Income / Sales |
| $1252800/31320000=4% |
| c. Turnover= Sales/ Average OPerating Asset |
| =31320000/5800000=5.4 times |
| d. ROI= Net Operating Income / Average Operatign Asset |
| =$1252800/5800000=21.60% |
| Part-3 |
| Average Operating Asset: No Change |
| Margin:- $2000000/$34670000=5.7687% |
| C. Tunover : No Change |
| d ROI =$2000000/6934000=28.8434% |
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Calculating Average Operating Assets, Margin, Turnover, Return on investment (RON) Forchen, in provided the following information...
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