: (D RE Acctg 48-28362-2017 Fa li Test #3 Acctg 48 (Chapters Q Ch 22 Ma : Kraft
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Question
: (D RE Acctg 48-28362-2017 Fa li Test #3 Acctg 48 (Chapters Q Ch 22 Ma : Kraft Foods Group reports he following for two of its disons for a recent year. All numbers aro in milions of dolars nvested assets, beginning2,600$5,100 4,850 3,900 663 2.400 2,600 338 Sales Operating income 1. Compute retum on investment. (Enter your answer in millions of dollar) Investment Center Retum on investment Cheese 2. Compute prote margn(Enter your answer in millions of dollar) Margin Profit Profit margn Cheese 3, Compute investmens umover for the year (Enter your answer in miltions of dolar)Explanation / Answer
Beverage Cheese division division invested assets,beginning 2,600 5,100 invested assets,ending 2,400 4,650 average assets 2500 4875 1) Return on investment Choose numerator / Choose Denominator= Return on investment investment Center net operating income / average invested assets Beverage 338 / 2,500 = 13.52% Cheese 663 / 4,875 = 13.60% 2) Pofit margin Choose numerator / Choose Denominator= profit margin investment Center net operating income / sales Beverage 338 / 2,600 = 13.00% Cheese 663 / 3,900 = 17.00% 3) investment turnover Choose numerator / Choose Denominator= investment turnover investment Center sales / average invested assets Beverage 2,600 / 2,500 = 1.04 Cheese 3,900 / 4,875 = 0.80
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