< Prev Next > Question 7 --/1 View Policies Current Attempt in Progress The Fulmar Division of Sunland Company had an ROI of 25% when sales were $2400000 and controllable margin was $480000. What were the average operating assets? O $9600 O $600000 O $120000 O $1920000

Problem 12-15 Return on Investment (ROI) and Residual Income [LO12-1, LO12-2]   Financial data for Joel de Paris, Inc., for last year follow:   Joel de Paris, Inc.Balance Sheet   BeginningBalance EndingBalance Assets Cash $ 129,000 $ 140,000 Accounts receivable   336,000   473,000 Inventory   561,000   477,000 Plant and equipment, net   834,000   810,000 Investment in Buisson, S.A.   400,000   432,000 Land (undeveloped)   254,000   247,000 Total assets $ 2,514,000 $ 2,579,000 Liabilities and Stockholders' Equity Accounts payable $ 384,000 $ 346,000 Long-term debt   967,000   967,000 Stockholders' equity   1,163,000   1,266,000 Total liabilities and stockholders' equity $ 2,514,000 $ 2,579,000       Joel de Paris, Inc.Income Statement Sales   $ 4,324,000 Operating expenses     3,805,120 Net operating income     518,880 Interest and taxes:       Interest expense 124,000     Tax expense 193,000   317,000 Net income   $ 201,880…

Exercise 10-9 (Algo) Return on Investment (ROI) and Residual Income Relations [LO10-1, LO10-2] 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 a minus sign. Do not round your intermediate calculations.) Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual income $ $ Company A 480,000 168,000 15 % 12 % $ $ $ Company B 660,000 46,000 17% 47,000 % Company C $ 570,000 $ *+ $ 158,000 % 12 % 7,000

QUESTION 28 Top management is trying to determine which would be the best choice of the following   investment opportunities: Data of investment choices: 2 Sales $9,000,000 Operating income      300,000 Average operating assets   3,000,000   Required:  Compute the Residual Income assuming a minimum required rate of return of 8%.       $66,000     $60,000     $50,000     $55,000