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The Reed Division reports the following operating data for the past two years:
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| |
Year 1
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Year 2
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Margin
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25%
|
?
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|
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Turnover
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2.5
|
2.0
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|
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Average operating assets
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?
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$227,000
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|
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Net operating income
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$43,800
|
?
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|
|
Stockholders equity
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$80,000
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$125,000
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|
|
Sales
|
?
|
?
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|
The return on investment at Reed was exactly the same in Year 1 and Year 2.
Average operating assets in Year 1 were: