Question

A family friend has asked your help in analyzing the operations of three anonymous compar industry. Supply the missing data in the table below: (Loss amounts should be indicated by answers to nearest whole percent.) Company -Book $ 9,000,000 $ $ 4,500,000 7,000,000 280,000 Print $ $ 1,800,000 "erences 3,000,000 18 % Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return; Percentage Dollar amount Residual income 15% 320,000 90,000

Answer 1

$45,00,000 $360000 I company Sales $ 90,00.000 $70.00,000 Net operating Income $ 540000 $280000 Average operating $30,00.000 $ 20,00,000 assets ROU 18 / 14 % minianum required rate of retum. percentage T 16 le 16 of Dollar amouent $480000 $320000 Residual Income $60,000 -$40,000 $18.00.000 204 151. If 270,000 $ 90,000 working loten for company - A ROL = Net operating ancome x 100 Average operating assets 18.1. = Net operating ancome $ 30,00,000 Net operating ancome = $5,40,000

minimum required rate of return Gn & $ 30,00.000 X16 L___ & $ 480,000 Resideal income $5, 40100 60,000 $4.80,000 for company - B ROL = $2,80.000 Average operating assos Average operating asseos $289000.- - $ 20,00.000 minimum required rate = $3,20,000 x 100 $ 20,00,000 Residual Income = $280,000 - $320,000 c- $ 40,000

for company - novi Residual Income = Net operating income f minimum required return $ 90,0062 Net operating an conse- $270.000 Net operating ancome - $ 3,60,000 ROP = $360,000 x 100 = 20%. $18,00,000