Question

Return on Investment, Margin, Turnover

Data follow for the Construction Division of D. Jack Inc.:

Year 1 Sales $141,075,000

Operating income 9,801,000

Average operating assets 354,375,000

Year 2 Sales $178,475,000

Operation Income 8,923,750

Average operating assets 365,062,500

If required, round your answers to two decimal places.

Required:

1. Compute the margin (as a percent) and turnover ratios for each year:

Year 1

Margin: %

Turnover:

Year 2

Margin: %

Turnover:

Compute the ROI (as a percent) for the Construction Division for each year. While calculating ROI use the rounded values that are obtained from part 1.

ROI year 1: %

ROI year 2: %

Answer 1