Question

A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector Industry. Supply the missing data in the table below. (Loss amounts should be indicated by a minus sign. Round your percentage answers to nearest whole percent and other amounts to whole dollars.) Company Sales 480,000 S 640.000 $ $ 820,000 54000 $ 162.000 147.000 Net operating Income Average operating assets Return on investment (ROI) Minimum required rate of return Percentage Dollar amount Residual income 47 000 $ 7000

Answer 1

A compact Ic Sales 15480000 $920000 $ 640000 Net operating income $32400 $54000 $27580 Average operating assets $162000 $300ood & 147000 Return on investment 20 / 18 / 19 CROID minimum required rate of return; percentage c4 1 6 11.14 Dollar amount $92680 $47000 $20580 Residual ancome $9720 $ 7oob 8 7000 L. for company-A ROI = Net operating ancome x100 Average operating assets 201. = Net operating ancome $ 162000 IOS Nee operating ancome = $32400 Manimum required rate of return an & = $162000X141. & $22680 Residual income = $32400- $22680 & $9720

for company - B ROD = $ 4ooo X100 Average operating assets Average operating assets = suooo 181 $3,00.000 minimum required rate = $47000 X 100 $ 300,000 E 1601 3 Residual Phcome = $.5 youo - $ 47000 = $ 7000 for company-ci Residual ancome = Net operating income - Minimum required rate & 7ooo het operating ancome- 20580 Net operating income = $27580 Roi $27580 (0o algo P $147000