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Exercise 9-8 Return on Investment (ROI) and Residual Income Relations [LO1, LO2] A family friend has asked your help in analyzing the operations of three

Exercise 9-8 Return on Investment (ROI) and Residual Income Relations [LO1, LO2]

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: (Negative amounts should be indicated with a minus sign. Do not round immediate calculations, but round your final answers to the nearest whole number.)


Company

A B C
Sales $ 340,000 $ 720,000 $ 670,000
Net operating income $ $ 37,000 $
Average operating assets $ 163,000 $ $ 145,000
Return on investment (ROI) 25% 19% %
Minimum required rate of return:
Percentage 15% % 9%
Dollar amount $ $ 54,000 $
Residual income $ $ $ 5,000

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