Question: 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

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

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 Cleaning Products Division Division Sales $41,604,000 $23,200,000 Operating income 3,744,360 928,000 Operating assets, January 1 6,394,000 5,600,000 7,474,000 6,000,000 Operating assets, December 31 Required: 1. For the Small Appliances Division, calculate: a. Average operating assets $ 6,934,000 b. Margin 9 % c. Turnover d. ROI 6 54 % 2. For the Cleaning Products Division, calculate: a. Average operating assets $ 5,800,000 b. Margin c. Turnover 4 % 4 d. ROI 16 % 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 % Margin Turnover Unaffected by Lower by 6 X % Unaffected by 6 X % by 18 % Return on investment (ROI) Lower

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