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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 (61) Comparative data
Return on investment is often expressed as follows: Controllable margin Controllable margin Sales ROI X Average operating assets Sales Average operating assets (61) 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 0 decimal places, eg. 152. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) Company A Company B Company C Sales $1,494,000 $724,100 (a) $ Net operating income (b) $ $164,340 $159,302 Average operating tic 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 Cto 1 decimal place, eg. 15.2 or 15.2% and all other answers to 0 decimal places, eg. 152. Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).) Company A Company B Company C Sales $1,494,000 $724,100 Net operating income (b) $ $164,340 $159,302 Average operating assets (c) $ $747,000 $5,128,000 Profit margin (d) % (e) % 0.6 % Assets turnover 4 Return on investment (h) % 2.2 % (0) % Residual income (k) $ (1) $
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