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 amount of Invested Assets for Alpha division ["", "", "", "", ""] (b) Calculate the Sales Margin for Beta division ["", "", "", ""] (c) Calculate the Capital Turnover Ratio 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 amount of Invested Assets for Alpha division ["", "", "", "", ""]
(b) Calculate the Sales Margin for Beta division ["", "", "", ""]
(c) Calculate the Capital Turnover Ratio for Gamma division
Step by step
Solved in 2 steps with 6 images
