Question

Provide the missing data in the following table for a distributor of martial arts products: (Enter "Turnover" and "ROI" answers to 1 decimal place.)

	Division
	Alpha		Bravo		Charlie
Sales			$276,000
Net operating income			$22,080		$30,240
Average operating assets	$497,000
Margin	4	%	8	%	7	%
Turnover	4.0
Return on investment (ROI)		%	16.0	%	10.5	%

Answer 1

Answer)

Missing values of alpha:

Turnover:Sales/average operating assets

Sales=4.0×$497000=$1988000

Operating profit:$1988000×4%=$79520

Return on Investment:

Operating profit/average operating assets×100

=$79520/$497000×100=16%

Missing values of Bravo:

Return on investment:

operating profit/average net assets×100=16

=Average net assets=$138000

Turnover :sales/net average assets

=$276000/$138000=2.0

Missing values of Charlie:

Margin:net operating income/sales×100=7

Sales=$30240/7×100=$432000

Return on investment:

net operating income/average operating assets×100=10.5

=Average operating assets=$30240/10.5×100=$288000

Turnover:sales/average operating assets

=$432000/$288000=1.5