ROI, Margin, Turnover Jarriot, Inc., presented two years of data for its Furniture Division and its Houseware Division. Furniture Division:   Year 1 Year 2 Sales $33,870,000 $36,210,000 Operating income 1,422,540 1,520,820 Average operating assets 10,000,000 10,000,000 Houseware Division:   Year 1 Year 2 Sales $12,590,000 $13,139,800 Operating income 604,320 499,312 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 Furniture Division.   Furniture Division       ROI Margin Turnover   Year 1  %  %   Year 2  %  %   2. Compute the ROI and the margin and turnover ratios for each year for the Houseware Division.   Houseware Division       ROI Margin Turnover   Year 1  %  %   Year 2  %  %     3. Indicate the reason for change in ROI from Year 1 to Year 2 for the Furniture Division.  Indicate the reason for change in ROI from Year 1 to Year 2 for the Houseware Division.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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ROI, Margin, Turnover

Jarriot, Inc., presented two years of data for its Furniture Division and its Houseware Division.

Furniture Division:

  Year 1 Year 2
Sales $33,870,000 $36,210,000
Operating income 1,422,540 1,520,820
Average operating assets 10,000,000 10,000,000

Houseware Division:

  Year 1 Year 2
Sales $12,590,000 $13,139,800
Operating income 604,320 499,312
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 Furniture Division.

  Furniture Division
   
  ROI Margin Turnover
 
Year 1  %  %  
Year 2  %  %  

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

  Houseware Division
   
  ROI Margin Turnover
 
Year 1  %  %  
Year 2  %  %  

 

3. Indicate the reason for change in ROI from Year 1 to Year 2 for the Furniture Division.
 

Indicate the reason for change in ROI from Year 1 to Year 2 for the Houseware Division.
 

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