Problem

ROI and Residual Income; Missing Data (L0 2)The following data pertain to three divisions...

ROI and Residual Income; Missing Data (L0 2)

The following data pertain to three divisions of Nevada Aggregates, Inc. The company’s required rate of return on invested capital is 8 percent.

 

Division A

Division B

Division C

Sales revenue

?

$10,000,000

?

Income

$400,000

$2,000,000

?

Average investment

?

$2,500,000

?

Sales margin

20%

?

25%

Capital turnover

1

?

?

ROI

?

?

20%

Residual income

?

?

$120,000

Required: Fill in the blanks above.

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