Forchen, Inc., provided the following information for two of its divisions for last year: Small Appliances Division Cleaning Products Division Sales Operating income Operating assets, January 1 34,670,000 2,773,600 6,394,000 Operating assets, December 31 7,474,000 1. For the Small Appliances Division, calculate: a. Average operating assets b. Margin c. Turnover d. ROI 2. For the Cleaning Products Division, calculate: a. Average operating assets b. Margin c. Turnover d. ROI 31,320,000 1,252,800 5,600,000 6,000,000 3. What if operating income for the Small Appliances Division was $2,000,000? How would that affect average operating assets? Margin? Turnover? ROI? Calculate any changed ratios.
Forchen, Inc., provided the following information for two of its divisions for last year: Small Appliances Division Cleaning Products Division Sales Operating income Operating assets, January 1 34,670,000 2,773,600 6,394,000 Operating assets, December 31 7,474,000 1. For the Small Appliances Division, calculate: a. Average operating assets b. Margin c. Turnover d. ROI 2. For the Cleaning Products Division, calculate: a. Average operating assets b. Margin c. Turnover d. ROI 31,320,000 1,252,800 5,600,000 6,000,000 3. What if operating income for the Small Appliances Division was $2,000,000? How would that affect average operating assets? Margin? Turnover? ROI? Calculate any changed ratios.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Forchen, Inc., provided the following information for two of its divisions for last year:
Small Appliances Division Cleaning Products Division
Sales
Operating income
Operating assets, January 1
34,670,000
2,773,600
6,394,000
Operating assets, December 31 7,474,000
1. For the Small Appliances Division, calculate:
a. Average operating assets
b. Margin
c. Turnover
d. ROI
2. For the Cleaning Products Division, calculate:
a. Average operating assets
b. Margin
c. Turnover
d. ROI
31,320,000
1,252,800
5,600,000
6,000,000
3. What if operating income for the Small Appliances Division was $2,000,000? How would that
affect average operating assets? Margin? Turnover? ROI? Calculate any changed ratios.
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