Spartans Inc. has three operating divisions: Alpha, Beta, and Gamma. Financial information for each division in displayed below. Alpha Beta Gamma Sales $525,000 $625,000 $475,000 Oper. Exp. $465,000 ? $437,000 Oper. Income $60,000 $75,000 ? Inv. Assets ? ? $380,000 ROI 0.2000 0.1500 ? Sales Margin ? ? 0.0800 Cap. Turn ? 1.25 ? Use the DuPont Equation to calculate the following values: Return on Investment = Net Operating Income Avg. Invested Assets which can be further separated into: Return on Investment = [Sales Margin x Capital Turnover] (a) Calculate the Sales Margin for Alpha division (b) Calculate the Amount of Invested Assets for Beta division (c) Calculate the Capital Turnover for Gamma division
Spartans Inc. has three operating divisions: Alpha, Beta, and Gamma. Financial information for each division in displayed below.
Alpha Beta Gamma
Sales $525,000 $625,000 $475,000
Oper. Exp. $465,000 ? $437,000
Oper. Income $60,000 $75,000 ?
Inv. Assets ? ? $380,000
ROI 0.2000 0.1500 ?
Sales Margin ? ? 0.0800
Cap. Turn ? 1.25 ?
Use the DuPont Equation to calculate the following values:
Avg. Invested Assets
which can be further separated into:
Return on Investment = [Sales Margin x Capital Turnover]
(a) Calculate the Sales Margin for Alpha division
(b) Calculate the Amount of Invested Assets for Beta division
(c) Calculate the Capital Turnover for Gamma division
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