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Return on investment is often expressed as follows: Controllable margin Controllable margin Sales ROI = X Average operating assets Sales Average operating assets (b1) Comparative
Return on investment is often expressed as follows: Controllable margin Controllable margin Sales ROI = X Average operating assets Sales Average operating assets (b1) Comparative data on three companies operating in the same industry follow. The minimum required ROI is 10% for all three companies. Determine the missing amounts. (Round asset turnover of Company B and return on investment of Company C to 1 decimal place, e.g. 15.2 or 15.2% and all other answers to O decimal places, e.g. 152. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Sales Company A $1,598,000 Company B Company C $771,100 (a) $ (b1) Comparative data on three companies operating in the same industry follow. The minimum required ROI is 10% for all three companies. Determine the missing amounts. (Round asset turnover of Company B and return on investment of Company C to 1 decimal place, e.g. 15.2 or 15.2% and all other answers to O decimal places, e.g. 152. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Sales Net operating income Average Company A $1,598,000 $175,780 Company B Compan (a) $ $771,100 (b) $169,642 operating (c) assets $799,000 Profit (d) % (e) % margin Assets (f) turnover Return on investment (h) % 2.2 % (i) Residual (j) $ (k) $ (1) $ income $5,358,000 0.5 % 5 %
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