Liz Raiborn Inc. has the following financial results for the years 2019 through 2021 for its three regional divisions:     2019 2020 2021 Revenue                   Southwest $ 14,900   $ 22,000   $ 26,000   Midwest   6,700     7,000     7,200   Southeast   12,400     13,000     13,300   Total $ 34,000   $ 42,000   $ 46,500   Net Operating Income                   Southwest $ 1,100   $ 1,200   $ 1,350   Midwest   1,250     1,600     1,550   Southeast   1,000     1,200     1,600   Total $ 3,350   $ 4,000   $ 4,500   Average Total Assets                   Southwest $ 14,000   $ 14,200   $ 16,800   Midwest   4,700     4,200     4,200   Southeast   5,300     5,600     5,600   Total $ 24,000   $ 24,000   $ 26,600     Required: Calculate return on sales (ROS), asset turnover (AT), and return on investment (ROI) for each division and also for the firm as a whole for each of the three years 2019, 2020, and 2021. (Note: Due to rounding your percentages, the totals for the firm might not be the actual total of the individual divisions.) (Round "Asset turnover (AT)" answers to 3 decimal places and other answers to 1 decimal place.)

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
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Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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Liz Raiborn Inc. has the following financial results for the years 2019 through 2021 for its three regional divisions:

 

  2019 2020 2021
Revenue                  
Southwest $ 14,900   $ 22,000   $ 26,000  
Midwest   6,700     7,000     7,200  
Southeast   12,400     13,000     13,300  
Total $ 34,000   $ 42,000   $ 46,500  
Net Operating Income                  
Southwest $ 1,100   $ 1,200   $ 1,350  
Midwest   1,250     1,600     1,550  
Southeast   1,000     1,200     1,600  
Total $ 3,350   $ 4,000   $ 4,500  
Average Total Assets                  
Southwest $ 14,000   $ 14,200   $ 16,800  
Midwest   4,700     4,200     4,200  
Southeast   5,300     5,600     5,600  
Total $ 24,000   $ 24,000   $ 26,600  
 

Required:

Calculate return on sales (ROS), asset turnover (AT), and return on investment (ROI) for each division and also for the firm as a whole for each of the three years 2019, 2020, and 2021. (Note: Due to rounding your percentages, the totals for the firm might not be the actual total of the individual divisions.) (Round "Asset turnover (AT)" answers to 3 decimal places and other answers to 1 decimal place.)

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