Exercise 11-9 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.)

	Company
	A		B		C
Sales	$340,000		$690,000		$650,000
Net operating income			$42,000
Average operating assets	$152,000				$156,000
Return on investment (ROI)	22	%	21	%		%
Minimum required rate of return:
Percentage	16	%		%	15	%
Dollar amount			$56,000
Residual income					$8,000