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Beta Inc has the following data for last years operations: Sales................................ $100,000 Net Operating Income........ $6,000 Average Operating Assets... $40,000 Stockholders Equity............... $25,000 Minimum Required

Beta Inc has the following data for last years operations:

Sales................................ $100,000

Net Operating Income........ $6,000

Average Operating Assets... $40,000

Stockholders Equity............... $25,000

Minimum Required rate of return. 10%

a) Compute Residual Income

b) Compute return of investment

Alpha Corp reported operating data as follows for the past year:

Sales..................$600,000

Net Operating Income....$30,000

Average Operating Assets....$200,000

Stakeholders Equity.................. $50,000

Residual Income........................ $14,000

a) Calculate Alpha's Minimum Rate of Return

b)Alpha's Margin

c) Alpha's turnover

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