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ari File Edit View History Bookmarks Window Help ezto.mhe ducation. Ch 9 Homework Chegg Backflip Emote in R... Assignments: ACC-152-002N Question 3 (of 7) Provide the missing data in the following table for a distributor of martial arts products: (Enter your Mar and ROI answers to the nearest percentage (i.e, 0.123 should be entered as 12). Round Brav Turnover to 1 decimal place.) Division Bravo 11.500,000 Alpha Charlie Sales Net operating income Average operating assets Margin Turnover Return on investment S 920,000 210,000 800,000 41% 71% 201% 141 % ROl eBook & Resources eBook: Compute return on investment enses, andExplanation / Answer
Division Alpha
Return on Investment = Margin*Turnover
= 4%*5 = 20%
Return on Investment = Net Operating Income/Average Operating Assets
20% = Net Operating Income/$800,000
Net Operating Income = $800,000*20% = $160,000
Margin = Net Operating Income/Sales
4% = $160,000/Sales
Sales = $160,000/4% = $4,000,000
Division Bravo
Return on Investment = Net Operating Income/Average Operating Assets
20% = $920,000/Average Operating Assets
Average Operating Assets = $920,000/20% = $4,600,000
Margin = Net Operating Income/Sales
= $920,000/$11,500,000 = 0.08 or 8%
Turnover = Sales/Average Operating Assets
= $11,500,000/$4,600,000 = 2.5
Division Charlie
Turnover = ROI/Margin = 14%/7% = 2
Sales = Net Operating Income/Margin = $210,000/7% = $3,000,000
Average Operating Assets = Sales/Turnover = $3,000,000/2 = $1,500,000
Division Alpha Bravo Charlie Sales $4,000,000 $11,500,000 $3,000,000 Net Operating Income $160,000 $920,000 $210,000 Average Operating Assets $800,000 $4,600,000 $1,500,000 Margin 4% 8% 7% Turnover 5 2.5 2 Return on Investment (ROI) 20% 20% 14%Related Questions
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