Question
Munoz Corporations balance sheet indicates that the company has $600,000 invested in operating assets. During 2018, Munoz earned operating income of $72,000 on $1,200,000 of
Munoz Corporations balance sheet indicates that the company has $600,000 invested in operating assets. During 2018, Munoz earned operating income of $72,000 on $1,200,000 of sales.
a. Complete the spreadsheet to calculate ROI and residual income using these data.
Spreadsheet Tips
1. The cells below row 21 that show numbers should all be based on formulas. This allows the results to be automatically recalculated based on changes in the data in rows 12 to 15.
3. Explore the power of formulas by copying cells A12:I31 into the scratchpad area below. There you will be able to modify the given information (currently in cells C12:C15) and see the resulting changes in ROI and residual income.
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
