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Calculating Average Operating Assets, Margin, Turnover, Return on Investment (ROI)

Forchen, Inc., provided the following information for two of its divisions for last year:

	Small Appliances Division	Cleaning Products Division
Sales	$41,604,000	$29,000,000
Operating income	3,328,320	870,000
Operating assets, January 1	6,394,000	5,600,000
Operating assets, December 31	7,474,000	6,000,000

Required:

1. For the Small Appliances Division, calculate: a. Average operating assets $ b. Margin % c. Turnover d. Return on investment (ROI) % 2. For the Cleaning Products Division, calculate: a. Average operating assets b. Margin % c. Turnover d. Return on investment (ROI) % 3. What if operating income for the Small Appliances Division was $2,496,240? How would that affect average operating assets? Margin? Turnover? ROI? Calculate any changed ratios. When required, round the percent to four decimal places before converting to a percentage. For example, .88349 would be rounded to .8835 and entered as 88.35. Enter "0", where ever required. Average operating assets by % Margin by Turnover by % Return on investment (ROI) by %