Question

2. Fill in the missing information. (Round the "Turnover" and "ROI" answers to 2 decimal places.)

	Company A B C Sales $5,061,000 $1,330,000 Net operating income $708,540 $186,200 Average operating assets $2,410,000 $3,320,000 Margin % % 8 % Turnover 2.00 Return on investment (ROI) % 7.00 % %

Answer 1

Margin=Net operating income/Sales

Turnover=Sales/Average operating assets

ROI=Net operating income/Average operating assets

	A	B	C
Sales	5,061,000	1,330,000	(3,320,000*2)=$6,640,000
Net operating income	708540	186200	(6,640,000*8%)=$531200
Average operating assets	2,410,000	(186200/0.07)=$2,660,000	3,320,000
Margin	(708540/5,061,000)=14%	(186200/1,330,000)=14%	8%
Turnover	(5,061,000/2,410,000)=2.1	(1,330,000/2,660,000)=0.5	2
ROI	(708540/2,410,000)=29.4%	7%	(531200/3,320,000)=16%