Question
Data on three unrelated companies are given in the following table Fill in the missing information in the preceding table. (Enter the capital turnover to
Data on three unrelated companies are given in the following table
Fill in the missing information in the preceding table. (Enter the capital turnover to two decimal places X.XX.)
|
| Preston, Inc. | |
| Sales. . . . . . . . . . . . . . . . . . . . . . . | $116,000 | |
| Operating income. . . . . . . . . . . . . | $46,400 | |
| Total assets. . . . . . . . . . . . . . . . . . | $80,000 | |
| Sales margin. . . . . . . . . . . . . . . . . |
| % |
| Capital turnover. . . . . . . . . . . . . . . |
| |
| Return on investment (ROI). . . . . |
| % |
| Target rate of return. . . . . . . . . . . . | 12 | % |
| Residual income. . . . . . . . . . . . . . |
|
|
Data Table
|
| Preston, Inc. | Gammaro Company | Johnson Industries |
|---|---|---|---|
| Sales. . . . . . . . . . . . . . . . . . . . . . . . . | $116,000 | ? | $484,000 |
| Operating income. . . . . . . . . . . . . . | $46,400 | $110,600 | ? |
| Total assets. . . . . . . . . . . . . . . . . . . | $80,000 | ? | ? |
| Sales margin. . . . . . . . . . . . . . . . . . | ? | 14% | 10% |
| Capital turnover. . . . . . . . . . . . . . . | ? | 4.00 | ? |
| Return on investment (ROI). . . . . | ? | ? | 22% |
| Target rate of return. . . . . . . . . . | 12% | 21% | ? |
| Residual income (RI). . . . . . . . . . . | ? | ? | $4,400 |
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Payroll Accounting 2021
Authors: Bernard J. Bieg, Judith A. Toland
31st Edition
0357358287, 9780357358283
