Chapter 11

Question & Requirement

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. Round your percentage answers to nearest whole percent) 340,000 Company 790,000 44,000 560,000 $ $ $ $ $ 155,000 160,000 24 % 15 % Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual income 16 % | 14% $ 40,000 $ 5,000