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Question

or.com%2Fpaamweb%2Finde..- ? eam GGoogle Gblackboard ku-Go User Dashboard Q New Tab Search NKU Webmal NorthConnect 11 Homework Help Save & E Exercise 11-9 Return on Investment (ROI) and Residual Income Relations [L011-1, LO11-2] 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?minus sign. Round your percentage answers to nearest whole percent and other amounts to whole dollers) S 440,000$ 760.000 51.000 610.0D0 Net operating income operating aseets 154,000 $ 16,000 20 S 201% Return on investment (RO Minimum required rate of retun 12% 56.000 Dollar amount Residual income 8.000 to searchh hp ho ha 0

Explanation / Answer

ROI = Net operating income/Average operating assets Residual income = net operating income-(average operating assets* min rate of return) A B C Sales 440,000 760,000 610,000 Net operating income 30800 51,000 29,900 Average operating assets 154,000 255000 146,000 Return on investment (ROI) 20% 20% 20% Min required rate of return percentage 12% 22% 15% dollar amount 18480 56,000 21900 Residual income 12320 -5,000 8,000