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: (Loss amounts should be indicated by a minus sign. Enter your ROl and Rate of Return Percentage answers to the nearest percentage (i.e., 0.12 should be entered as 12).) Company $ 370,000 $ 650,000 $ 840,000 44,000 Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return $ 169,000 $ 147,000 16% 19% 141% 15% Percentage Dollar amount 43,000 Residual income 6,000

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Company Paticulars A B C Sales                     370,000.00                     840,000.00              650,000.00 Net operating Income A = 169,000*16% C = 22050 + 6000                        27,040.00                        44,000.00                 28,050.00 Average operating assets B = 44,000/19%                     169,000.00                     231,578.95              147,000.00 Return on investment ( ROI) C = 28050/147000 16.00% 19.00% 19.08% Minimum required rate of return Percentage B = 43,000/231,578.95 14.00% 18.57% 15.00% Dollar amount A = 169000*14% C = 147,000*15%                        23,660.00                        43,000.00                 22,050.00 Residual Income A = 27,040 - 23,660 B = 44000 - 43000                          3,380.00                          1,000.00                   6,000.00

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