Question

Required Supply the missing information in the following table for Campbell Company. (Do not round intermediate calculations. Round "ROI" answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).) Sales $ 307,800 % ROI Operating assets Operating income Turnover 1.8 Residual income Operating profit margin Desired rate of return 15 % 18 %

Answer 1

Sales ROI Operating Assets Operating Income Residual Income Operating Profit Margin Desired Rate of Return $ 307,800 27% $1,71,000 $46,170 1.8 $15,390 18% WORKING NOTE: Operating Income = Sales x Operating profit Maxain = $ 3,0 7,800 x 15% = $ 46,170 Operating Assets. = Saks siurnover $1,71,000 $ 3,07, 800 /1.8 = 1 $ 46,170 Operating Tercome * ROI Operating' Assets * Residual Income = Operating Income (Oporating Assets x $ 46,170 - (none X 18%) = $15,390 27% X100= $11.000 Desired Rate)