Exercise 10-2 (Algo) Residual Income [LO10-2]

Juniper Design Limited of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of $500,000 on sales of $1,500,000. The companys average operating assets for the year were $1,700,000 and its minimum required rate of return was 13%.

Required:

Compute the companys residual income for the year.

Exercise 10-1 (Algo) Compute the Return on Investment (ROI) [LO10-1]

Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below:

Sales	$ 18,300,000
Net operating income	$ 5,200,000
Average operating assets	$ 35,800,000

Required:

1. Compute the margin for Alyeska Services Company. (Round your answer to 2 decimal places.)

2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.)

3. Compute the return on investment (ROI) for Alyeska Services Company. (Round your intermediate calculations and final answer to 2 decimal places.)