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ari File Edit View History Bookmarks Window Help ezto.mhe ducation. Ch 9 Homework Chegg Backflip Emote in R... Assignments: ACC-152-002N Question 3 (of 7) Provide the missing data in the following table for a distributor of martial arts products: (Enter your Mar and ROI answers to the nearest percentage (i.e, 0.123 should be entered as 12). Round Brav Turnover to 1 decimal place.) Division Bravo 11.500,000 Alpha Charlie Sales Net operating income Average operating assets Margin Turnover Return on investment S 920,000 210,000 800,000 41% 71% 201% 141 % ROl eBook & Resources eBook: Compute return on investment enses, and

Solution

Division Alpha

Return on Investment = Margin*Turnover

= 4%*5 = 20%

Return on Investment = Net Operating Income/Average Operating Assets

20% = Net Operating Income/$800,000

Net Operating Income = $800,000*20% = $160,000

Margin = Net Operating Income/Sales

4% = $160,000/Sales

Sales = $160,000/4% = $4,000,000

Division Bravo

Return on Investment = Net Operating Income/Average Operating Assets

20% = $920,000/Average Operating Assets

  Average Operating Assets = $920,000/20% = $4,600,000

Margin = Net Operating Income/Sales

= $920,000/$11,500,000 = 0.08 or 8%

Turnover = Sales/Average Operating Assets

= $11,500,000/$4,600,000 = 2.5

Division Charlie

Turnover = ROI/Margin = 14%/7% = 2

Sales = Net Operating Income/Margin = $210,000/7% = $3,000,000

Average Operating Assets = Sales/Turnover = $3,000,000/2 = $1,500,000

	Division
	Alpha	Bravo	Charlie
Sales	$4,000,000	$11,500,000	$3,000,000
Net Operating Income	$160,000	$920,000	$210,000
Average Operating Assets	$800,000	$4,600,000	$1,500,000
Margin	4%	8%	7%
Turnover	5	2.5	2
Return on Investment (ROI)	20%	20%	14%