Forchen, Inc., provided the following information for two of its divisions for last year: Small Appliances Division Cleaning Products Division Sales Operating income Operating assets, January 1 34,670,000 2,773,600 6,394,000 Operating assets, December 31 7,474,000 1. For the Small Appliances Division, calculate: a. Average operating assets b. Margin c. Turnover d. ROI 2. For the Cleaning Products Division, calculate: a. Average operating assets b. Margin c. Turnover d. ROI 31,320,000 1,252,800 5,600,000 6,000,000 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

i am confused for this question please provide correct answer

Forchen, Inc., provided the following information for two of its divisions for last year:
Small Appliances Division Cleaning Products Division
Sales
Operating income
Operating assets, January 1
34,670,000
2,773,600
6,394,000
Operating assets, December 31 7,474,000
1. For the Small Appliances Division, calculate:
a. Average operating assets
b. Margin
c. Turnover
d. ROI
2. For the Cleaning Products Division, calculate:
a. Average operating assets
b. Margin
c. Turnover
d. ROI
31,320,000
1,252,800
5,600,000
6,000,000
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.
Transcribed Image Text:Forchen, Inc., provided the following information for two of its divisions for last year: Small Appliances Division Cleaning Products Division Sales Operating income Operating assets, January 1 34,670,000 2,773,600 6,394,000 Operating assets, December 31 7,474,000 1. For the Small Appliances Division, calculate: a. Average operating assets b. Margin c. Turnover d. ROI 2. For the Cleaning Products Division, calculate: a. Average operating assets b. Margin c. Turnover d. ROI 31,320,000 1,252,800 5,600,000 6,000,000 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.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education