Refer to the information in S24-7. Requirements 1. Compute each divisions asset turnover (round to two decimal

Question:

Refer to the information in S24-7.
Requirements
1. Compute each division’s (round to two decimal places). Interpret your results.
2. Use your answers to Requirement 1, along with the profit margin, to recalculate ROI using the expanded formula. Do your answers agree with the basic ROI in S24-7?

Asset Turnover
Asset 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.