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ZYX-BOXX Company - Sales for Beta Division

1. THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 1 THROUGH 5. The top management at ZYX-BOXX Company, a manufacturer of computer games, is attempting to recover from a flood that destroyed some of their accounting records. The main computer system was also severely damaged. The following information was salvaged:
Alpha Beta Gamma
Sales $2,500,000 Question 1 $1,150,000
Net Operating Income $1,500,000 $650,000 $575,000
Operating Assets Question 2 Question 3 $766,667
Return on Investment 25% 15% Question 4
Return on Sales Question 5 10% 50%
Investment Turnover Ratio N/A N/A 1.5
What were the sales for the Beta Division?

a $4,333,333
b $5,952,380
c $6,500,000
d $7,151,800

2. What is the value of the assets belonging to the Alpha Division?

a $4,333,333
b $6,000,000
c $6,500,000
d $7,151,800

3. What is the value of the operating assets belonging to the Beta Division?

a $4,333,333
b $5,952,380
c $6,500,000
d $7,151,800

4. What is the Gamma Division's return on investment?

a 25.00%
b 42.00%
c 60.00%
d 75.00%

5. What is the Alpha Division's return on sales?

a 25.00%
b 42.00%
c 60.00%
d 75.00%

Solution Summary

I created a tutorial showing you the numerator and denominator for each ratio and how you find the "missing" piece. See excel attached. Click in cells to see computations that support each recommendation.

$2.19