Return on Investment (ROI) and Residual Income RelationsA 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: CompanySales...Net operating incomeAverage operating assetsReturn on investment (ROI).Minimum required rate of return:$9.000,000$7,000,000$ 280,000$4,500,000$3.000,00018%$1,800,00014%PercentageDoliar amountResidual income16%15%$ 320,0002$2$90,000

Calculating Margin, Turnover, Return of Income for Division and Residual Income: In order to find…

Company Sales... Net operating income Average operating assets Return on investment (ROI). Minimum required rate of return: $9.000,000 $7,000,000 $ 280,000 $4,500,000 $3.000,000 18% $1,800,000 14% Percentage Doliar amount Residual income 16% 15% $ 320,000 2$ 2$ 90,000

Company Sales... Net operating income Average operating assets Return on investment (ROI). Minimum required rate of return: $9.000,000 $7,000,000 $ 280,000 $4,500,000 $3.000,000 18% $1,800,000 14% Percentage Doliar amount Residual income 16% 15% $ 320,000 2$ 2$ 90,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.5.1MBA

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Question

Return on Investment (ROI) and Residual Income Relations

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:

Company
Sales...
Net operating income
Average operating assets
Return on investment (ROI).
Minimum required rate of return:
$9.000,000
$7,000,000
$ 280,000
$4,500,000
$3.000,000
18%
$1,800,000
14%
Percentage
Doliar amount
Residual income
16%
15%
$ 320,000
2$
2$
90,000

Formula Formula ROI (%) = Net Income Principal Amount × 100

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