Quaker Foods North America is another one of PepsiCo’s divisions. For fiscal year 2012, the division had assets of $966 million, operating income of $695 million, and sales revenue of $2,636 million.
A )Compute Quaker’s ROI, sales margin, and capital turnover
b)
Compute Quaker’s residual income, assuming the minimum acceptable rate of return is 25%.
Darshita Changed status to publish August 30, 2020
Answer:
A)
| Operating income | / | Total assets | = | ROI |
| $695 | / | $966 | = | 71.9 % |
| Operating income | / | Sales revenue | = | Sales margin |
| $695 | / | $2,636 | = | 26.4 |
| Sales revenue | / | Total assets | = | Capital turnover |
| $2,636 | / | $966 | = | 2.73 times |
Darshita Changed status to publish August 30, 2020
