Homework SourseData follow for the Consumer Products Division of Kisler Inc
Data follow for the Consumer Products Division of Kisler Inc.:
1. Compute the margin (as a percent) and turnover ratios for each year. Round your answers to two decimal places.
2. Compute the ROI for the Construction Division for each year.
Note: Enter percentage to two decimal places.
| Year 1 | Year 2 | |||
| Sales | $9,210,000 | $7,940,000 | ||
| Operating income | 517,602 | 307,278 | ||
| Average operating assets | 18,058,824 | 17,644,444 |
Solution
Answer
1 )
2 )
ROI year 1 = 517602 * 100 / 18058824 = 2.87 %
ROI year 2 = 307278 * 100 / 17644444 = 1.74 %
| year1 | year 2 | |
| margin | 517602*100 / 9210000 = 5.62 % | 307278 *100 / 7940000 = 3.87 % |
| turnover | 9210000 / 18058824 = 0.51 | 7940000 / 17644444 = 0..45 |
