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 $37,180,000 $39,740,000 Operating income 1,561,560 1,669,080 Average operating assets 10,000,000 10,000,000 Canned Foods Division: Year 1 Year 2 Sales $12,430,000 $13,016,000 Operating income 596,640 494,608 Average operating assets 5,000,000 5,000,000 Required: Round the ROI and margin percentages to two decimal places (for example, enter the decimal .10555 as "10.56" percent). Round the turnover ratio to two decimal places. 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 1 fill in the blank 1 % fill in the blank 2 % fill in the blank 3 Year 2 fill in the blank 4 % fill in the blank 5 % fill in the blank 6 2. Compute the ROI and the margin and turnover ratios for each year for the Canned Foods Division. Canned Foods Division ROI Margin Turnover Year 1 fill in the blank 7 % fill in the blank 8 % fill in the blank 9 Year 2 fill in the blank 10 % fill in the blank 11 % fill in the blank 12 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 Divisi

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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	$37,180,000	$39,740,000
Operating income	1,561,560	1,669,080
Average operating assets	10,000,000	10,000,000

Canned Foods Division:

	Year 1	Year 2
Sales	$12,430,000	$13,016,000
Operating income	596,640	494,608
Average operating assets	5,000,000	5,000,000

Required:

Round the ROI and margin percentages to two decimal places (for example, enter the decimal .10555 as "10.56" percent). Round the turnover ratio to two decimal places.

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 1	fill in the blank 1 %	fill in the blank 2 %	fill in the blank 3
Year 2	fill in the blank 4 %	fill in the blank 5 %	fill in the blank 6

2. Compute the ROI and the margin and turnover ratios for each year for the Canned Foods Division.

	Canned Foods Division

	ROI	Margin	Turnover

Year 1	fill in the blank 7 %	fill in the blank 8 %	fill in the blank 9
Year 2	fill in the blank 10 %	fill in the blank 11 %	fill in the blank 12

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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