Liz Raiborn, Inc., has the following financial results for the years 2016 through 2018 for its three
Question:
Liz Raiborn, Inc., has the following financial results for the years 2016 through 2018 for its three regional divisions:
Problem Information
2016
Revenue
Southwest .......................................................................................... 14900
Midwest ............................................................................................. 6700
Southeast ............................................................................................ 12400
Total ................................................................................................. 34000
Net Operating Income
Southwest .......................................................................................... 1100
Midwest ............................................................................................ 1250
Southeast .......................................................................................... 1000
Total ............................................................................................... 3350
Average Total Assets
Southwest .......................................................................................... 14000
Midwest ............................................................................................ 4700
Southeast .......................................................................................... 5300
Total ............................................................................................... 24000
Requirements:
Calculate return on sales (ROS), asset turnover (AT), and ROI for each division and also for the company as a whole for each of the three years 2016, 2017, and 2018.
Asset TurnoverAsset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
Step by Step Answer:
Cost Management A Strategic Emphasis
ISBN: 978-0078025532
6th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins