Question

Required Supply the missing information in the following table for Baird Company. (Do not round intermediate calculations. Round "ROI" answer to 2 decimal places. (ie.,.2345 should be entered as 23.45).) Sales ROL Operating assets Operating income Tumover Residual income Operating profit margin Desired rate of retum ances 16%

Answer 1

sales 332500 ROI 28.50 Operating assets 175000 operating income 49875 1.9 turnover residual income 21875 operating profit margin 15 desired rate of return 16 working notes operating income -332500*15% 49875 175000 operating assets= 332500/1.9 ROI-operating income/operating assets *100 residual income = operating income operating assets *desired rate)