Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Return on investment is often expressed as follows: Controllable margin Controllable margin Sales ROI x Average operating assets Sales Average operating assets (51) Comparative data

image text in transcribed

Return on investment is often expressed as follows: Controllable margin Controllable margin Sales ROI x Average operating assets Sales Average operating assets (51) 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).) Company A Company B Company C Sales $1,580,000 $725,800 (a) $ Net operating income (b) $173,800 $152,418 $ Average operating assets (c) $790,000 $ $5,387, Profit margin (d) % (e) % Assets turnover (f) (g) Return on investment (h) % 2.1 % (0) Residual income (1) (k) (1) $ $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advances In International Accounting Volume 20

Authors: J. Timothy Sale

1st Edition

0762313994, 9780762313990

More Books

Students also viewed these Accounting questions