Solution:
For Company A :
Net operating Income = $153,000×17% = $26,010
Minimum required rate of return: Dollar amount = $153,000×16% = $24,480$
Residual income = $26,010 - 24,480 = $1,530
For Company B :
Average operating assets = $39,000 / 0.19 = $205,263
Minimum required rate of return: Percentage = $51,000 / 205,263 = 25% (Rounded off)
Residual income = $39,000 - 51,000 = - $12,000
For Company C:
First we need to compute:
Dollar amount of minimum req. return = $158,000×11% = $17,380
Net operating income = $17,380 + 6,000 = $23,380
Return on investments(ROI) = $23,380 / 158,000 = 15%
Note:) If you have any query, ask me in comment section. Please give thumbs(ratings) !!!
A family friend has asked your help in analyzing the operations of three anonymous companies operating...
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 B А 350,000 $ $ 580,000 $ $ 690,000 39,000 $ $ 158,000 153,000 17% 19% Sales Net operating income Average operating assets Return on investment...
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. Do not round intermediate calculations. Round your answers to nearest whole number.) с А 400,000 Company в 710,000 38,000 $ $ 690,000 $ $ Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: $...
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 В C Sales 800,000 $ 330,000 $ 690,000 Net operating income 41,000 $ Average operating assets Return on investment (ROI) $ 155,000 147,000 22 % 21...
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. Enter your ROI and Rate of Return Percentage answers to the nearest percentage (i.e., 0.12 should be entered as 12).) Company A $ 450,000 $ 770,000 Sales 690,000 $ Net operating income 49,000 $ Average operating assets 306,250 158,000 152,000 16...
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 ABC $ 350,000 $ 740,000 $ 670,000 $ 49,000 $ 166,000 $ 141,000 25 % 20 % Sales Net operating income Average operating assets Return on...
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 в $ 830,000 $ 53,000 $ 370,000 18 $ $ 152.000 151,000 18% 15% Sales Net operating income Average operating assets Return on investment (ROI) Minimum...
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 450,000 520,000 $ $ 730,000 42,000 $ 153,000 147,000 21% Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return:...
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 A B C Sales $330,000 $690,000 $540,000 Net operating income $54,000 Average operating assets $151,000 $141,000 Return on investment (ROI) 16 % 19 % % Minimum...
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 $ $ 680,000 $ $ 830,000 48,000 460,000 1 164,000 19 % $ 158,000 17 % Net operating income Average operating assets Return on investment...
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.) A 350,000 Company B 790,000 38,000 C 670,000 $ $ $ | $ $ $ 143,000 162,000 22 % 20% Sales Net operating income Average operating assets...