Exercise 11-9 (Algo) Return on Investment (ROI) and Residual Income Relations [LO11-1, LO11-2]Supply the missing data for three service companies shown in the table below.Note: Loss amounts should be Indicated by a minus sign. Round your percentage answers to nearest whole percent.SalesNet operating incomeAverage operating assetsReturn on investment (ROMinimum required rate of return.PercentageDollar amountResidual incomeACompanyBCS 9,240,000S 7.400.000S 306,000$4,880.000S 3,080,000S 1,944.00015 %18 %9613 %96S340,00018 96$97.200

Return on investment (ROI) is a financial ratio used to calculate the benefit an investor will…

Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return. Percentage Dollar amount Residual income A Company B $ 9.240.000 $ 7.400.000 306,000 S 3.080,000 15 % 18 % 13 % S 340,000 C $ 4,880.000 $ 1,944.000 96 96 96 18 96 $ 97.200

Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return. Percentage Dollar amount Residual income A Company B $ 9.240.000 $ 7.400.000 306,000 S 3.080,000 15 % 18 % 13 % S 340,000 C $ 4,880.000 $ 1,944.000 96 96 96 18 96 $ 97.200

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 1MCQ

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Question

Exercise 11-9 (Algo) Return on Investment (ROI) and Residual Income Relations [LO11-1, LO11-2]
Supply the missing data for three service companies shown in the table below.
Note: Loss amounts should be Indicated by a minus sign. Round your percentage answers to nearest whole percent.
Sales
Net operating income
Average operating assets
Return on investment (RO
Minimum required rate of return.
Percentage
Dollar amount
Residual income
A
Company
B
C
S 9,240,000
S 7.400.000
S 306,000
$
4,880.000
S 3,080,000
S 1,944.000
15 %
18 %
96
13 %
96
S
340,000
18 96
$
97.200

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