Exercise 9-9 Return on Investment (ROI) and Residual Income Relations [LO9-1, LO9-2]

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. Enter your ROI and Rate of Return Percentage answers to the nearest percentage (i.e., 0.12 should be entered as 12).)

	Company
		A			B			C
Sales	$400,000		$690,000		$640,000
Net operating income			$40,000
Average operating assets	$166,000				$152,000
Return on investment (ROI)	22	%	19	%		%
Minimum required rate of return:
Percentage	13	%		%	12	%
Dollar amount			$42,000
Residual income					$4,000

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