Ames Co provides you the following financial information for 2020 and 2021:

The Companys minimum required rate of return is 13.5%.

Required A: Compute the Companys Average Operating Assets. Show work to receive full credit.

Required B: Compute the Companys margin, turnover and return on investment (ROI) ratios for 2021. Show all work to receive any credit.

Margin:

Turnover:

Return on Investment:

Required C: Compute the Companys 2021 Residual Income. Make sure to show work.

2021 Cash Accounts Receivable BALANCE SHEET 2020 $140,000 450,000 570,000 430,000 $1,590,000 $120,000 530,000 550,000 450,000 Inventory Property, Plant and Equipment, net Total Assets $1,650,000 310,000 1,050,000 Accounts Payable Long-Term Debt Stockholders' Equity Total Liabilities and Stockholders' Equity 360,000 1,070,000 160,000 $1,590,000 290,000 $1,650,000 Sales 2021 INCOME STATEMENT $4,050,000 13,726,000) $324,000 Operating Expenses Net Operating Income Income Taxes (160,000) Net Income $164,000