E10-5 (Algo) Finding Unknowns Using Return on Investment, Profit Margin, Investment Turnover [LO 10- 4] Krall Company recently had a computer malfunction and lost a portion of its accounting records. The company has reconstructed some of its financial performance measurements including components of the return on investment calculations. Required: Help Krall rebuild its information database by completing the following table: Note: Round your intermediate calculations to 2 decimal places. Round your final answers to 2 decimal places, (i.e. 0.1234 should be entered as 12.34%.). Answer is not complete. Return on Investment Investment Operating Profit Margin Sales Revenue Turnover Income Average Invested Assets % 6.60 % $ 47,000.00 $ % 9.50 % 0.48 $ 121,752.00 $ 712,000.00 1,281,600.00 $ $ 1,550,000.00 2,670,000.00 % 15.00 % 1.90 $ 470,250.00 $ 3,135,000.00 $ 1,650,000.00 12.60 % 35.28 % 2.80 $ 177,106.00 $ 502,000.00 $ 1,405,600.00 Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Orange has established a hurdle rate of 7 percent. Required: Fruit Division $ 960,000 720,000 $ 240,000 $ 2,000,000 Flower Division $ 1,440,000 1,080,000 $ 360,000 $ 2,000,000 1-a. Compute each division's return on investment (ROI) and residual income for last year. 1-b. Determine which manager seems to be performing better. 2. Suppose Orange is investing in new technology that will increase each division's operating income by $130,000. The total investment required is $2,000,000, which will be split evenly between the two divisions. Calculate the ROI and residual income for each division after the investment is made. 3. Determine whether both managers will support the investment. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3 Compute each division's return on investment (ROI) and residual income for last year. Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.) Fruit Division 3.03% ROI Residual Income (Loss) $ 5 Flower Division $ 28.50% 13 Prev 5 of 6 Next >