A family friend has asked your help in analyzing the operations of three anonymo

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: (Negative amounts should be indicated by a minus sign. Do not round immediate calculations, but round your final answers to the nearest whole number. ) Company A B C Sales $ 400,000 $ 750,000 $ 600,000 Net operating income $ $ 45,000 $ Average operating assets $ 160,000 $ $ 150,000 Return on investment (ROI) 20% 18% % Minimum required rate of return: Percentage 15% % 12% Dollar amount $ $ 50,000 $ Residual income $ $ $ 6,000 rev: 04_15_2013_QC_29221 ReferenceseBook & Resources Worksheet

Explanation / Answer

Dollar amount of what??? Not clear. Request you to check the values and figures again.

ROI = Net operating income / Average operating assets x 100

Residual Income = Net operating income - ( Average operating assets x Minimum required rate of return)

Company A Company B Company C Sales $ 400,000 $ 750,000 $ 600,000 Net operating income $ 32,000 $ 45,000 $ 24,000 Average operating assets $ 160,000 $ 250,000 $ 150,000 Return on investment (ROI) 20% 18% 16% Minimum required rate of return 15% 12% Dollar amount??? $ 50,000 Residual income $ 8,000 $ (5,000) ??? $ 6,000

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.