ROI, Margin, Turnover Allard, Inc., presented two years of data for its Frozen Foods Division and its Canned Foods Division. Frozen Foods Division: Year 1 Year 2 Sales $33,520,000 $36,220,000 Operating income 1,474,880 1,593,680 Average operating assets 10,000,000 10,000,000 Canned Foods Division: Year 1 Year 2 Sales $11,850,000 $12,319,000 Operating income 628,050 529,717 Average operating assets 5,000,000 5,000,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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ROI, Margin, Turnover
Allard, Inc., presented two years of data for its Frozen Foods Division and its Canned Foods Division.
Frozen Foods Division:
Year 1
Year 2
Sales
$33,520,000 $36,220,000
Operating income
1,474,880 1,593,680
Average operating assets
10,000,000
10,000,000
Canned Foods Division:
Year 1
Year 2
Sales
$11,850,000 $12,319,000
Operating income
628,050
529,717
Average operating assets
5,000,000
5,000,000
Transcribed Image Text:ROI, Margin, Turnover Allard, Inc., presented two years of data for its Frozen Foods Division and its Canned Foods Division. Frozen Foods Division: Year 1 Year 2 Sales $33,520,000 $36,220,000 Operating income 1,474,880 1,593,680 Average operating assets 10,000,000 10,000,000 Canned Foods Division: Year 1 Year 2 Sales $11,850,000 $12,319,000 Operating income 628,050 529,717 Average operating assets 5,000,000 5,000,000
1. Compute the ROI and the margin and turnover ratios for each year for the Frozen Foods Division.
Frozen Foods Division
ROI
Margin
Turnover
Year 11
%
%
Year 2
%
%
2. Compute the ROI and the margin and turnover ratios for each year for the Canned Foods Division..
Canned Foods Division
ROI
Turnover
Margin
%
Year 1
%
Year 2
%
%
3. Indicate the reason for change in ROI from Year 1 to Year 2 for the Frozen Foods Division.
Indicate the reason for change in ROI from Year 1 to Year 2 for the Canned Foods Division.
4. Which of the data analytic types-descriptive, diagnostic, predictive or prescriptive-is Allard using in comparing Year 1 to Year 2 for the ratios?
Transcribed Image Text:1. Compute the ROI and the margin and turnover ratios for each year for the Frozen Foods Division. Frozen Foods Division ROI Margin Turnover Year 11 % % Year 2 % % 2. Compute the ROI and the margin and turnover ratios for each year for the Canned Foods Division.. Canned Foods Division ROI Turnover Margin % Year 1 % Year 2 % % 3. Indicate the reason for change in ROI from Year 1 to Year 2 for the Frozen Foods Division. Indicate the reason for change in ROI from Year 1 to Year 2 for the Canned Foods Division. 4. Which of the data analytic types-descriptive, diagnostic, predictive or prescriptive-is Allard using in comparing Year 1 to Year 2 for the ratios?
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