Problem
The management at Lindy Company, a manufacturer of computer software packages, is attempting to recover from an earthquake that destroyed some of their accounting records. The main computer system was severely damaged. The following information was recovered:
Gof Cindy Tany
Sales $5 000 000 (a) $2 300 000
Net operating profit $3 000 000 $1 300 000 $1 150 000
Operating assets (b) (c) $1 533 334
Return on investment 0.50 0.30 (d)
Return on sales (e) 0.20 1
Investment turnover (f) (g) 3
1. What were the sales for the Cindy Division?
2. What is the value of the operating assets belonging to the Gof Division?
3. What is the value of the operating assets belonging to the cindy Division?
4. What is the Tany Division's return on investment?
5. What is the Gof Division's return on sales?
6. What is Gof Division's investment turnover?
7. What is Cindy Division's investment turnover?