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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 and other amounts to whole dollars.) Company B C Sales $ 400,000 $ 820,000 $ 550,000 Net operating income $ 30,020 $ 47,000 $ 24,520 Average operating assets $ 158,000 $ 146,000 Return on investment (ROI) 19 % 17% 17% Minimum required rate of return: Percentage 15 % % 12 % Dollar amount $ 23,700 $ 45,000 $ 17,520 Residual income $ 6,320 $ 2,000 $ 7,000
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