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) Company $440,000 Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return $ 650,000 54,000 $ 520,000 $162,000 $142,000 171% 18% 12% 101% Percentage Dollar amount 41,000 Residual income 8,000

Answer 1

440000650000520000 54000 22200 162000300000142000 sales Net Operating Income Average Operating Assets Return on Investment Minimum Required Rate of Return Percentage Dollar Amount Residual Income 27540 1690 17% 18% 14% 13000 12% 19440 8100 10% 41000 14200 8000

Calculations Net Operating Income Dollar amount (162000*17% 162000*12% 27540-19440 27540 19440 8100 300000 14% 13000 14200 22200 16% A Residual income Average Operating Asset 54000/18% Minimum Percentage 41000/300000 BRisidula income 54000-41000 142000*10% Dollar amount Net operating Income 14200+8000 C ROI 222000/142000

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