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Exercise 11-9 (Algo) Return on Investment (ROI) and Residual Income Relations [LO11-1, LO11-2] A family friend has asked your help in analyzing the operations
Exercise 11-9 (Algo) Return on Investment (ROI) and Residual Income Relations [LO11-1, LO11-2] 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.) A Company B C Sales Net operating income Average operating assets Return on investment (ROI) $ 9,390,000 $ 7,650,000 $ 324,000 $ 5,085,000 $ 3,130,000 $ 2,034,000 20 % 18 % % Minimum required rate of return: Percentage Dollar amount Residual income 18 % % 12 % $ 360,000 $ 101,700
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