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 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 required rate of return: Percentage Dollar amount Residual income 16% $ 59,000 6,000

Answer 1

	A	B	C
Sales	370,000	830000	560000
Net operating income	27,180	53000	22,720
AVERAGE OPERATING ASSETS	151,000	353,333	152000
Return of investment	18%	15%	15%
minimum required rate of return
PERCENTAGE	16%	17%	11%
DOLLAR AMOUNT	24,160	59000	16,720
residual income	3,020	(6,000)	6,000
Residual income = net operating income- minimum rate of return
Assets turnover/Turover = sales/avg operting assets
return of investment= net oprating income/avg operating assets
minimum req rate of retun = percentage of retun * investment