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Please show calculations of how to each get value where appropriate. Thanks x E10-21A (similar to) Data on three unrelated companies are given in the
Please show calculations of how to each get value where appropriate. Thanks
x E10-21A (similar to) Data on three unrelated companies are given in the following table. (Click the icon to view the table.) Fill in the missing information in the preceding table. (Enter the capital turnover to two decimal places X.XX.) Kerwin Industries $ 490,000 Rouse, Inc. Sales ....................$ 102,000 Operating income... .....$ 35,700 Total assets ... ....$ 85,000 Sales margin 35 % Capital turnover.... 1.20 Return on investment (ROI) ..... 42 % Target rate of return.... 11 % Residual income ..................$ 26,350 Plumb Company $ 786,000 $ 117,900 $ 163,750 15% 4.80 8 % 72 % 20% 20% 85,150 $ 1,960 Rouse, Inc. Kerwin Industries Plumb Company ? $ 117,900 $ 102,000 35,700 85,000 490,000 15% 8% Sales Operating income ........... Total assets ............. Sales margin Capital turnover. Return on investment (ROI) Target rate of return.......... Residual income (RI) ....... 4.80 20% 11% 20% ? $ 1,960Step by Step Solution
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