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	$34,670,000	$31,320,000
Operating income	2,773,600	1,252,800
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	$6,934,000
b. Margin	8	%
c. Turnover	?_____
d. Return on investment (ROI)	?_____	%

2. For the Cleaning Products Division, calculate: Round your turnover answer to one decimal place. Enter ROI as a percentage rounded to one decimal place.

a. Average operating assets	5,800,000
b. Margin	?____	%
c. Turnover	?______
d. Return on investment (ROI)	?____	%

3. What if operating income for the Small Appliances Division was $2,000,000? 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	HigherLowerUnaffected	by ____%
Margin	HigherLowerUnaffected	by _____%
Turnover	HigherLowerUnaffected	by ____%
Return on investment (ROI)	HigherLowerUnaffected	by ____%