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Return on investment is often expressed as follows: ROI = Controllable margin = Controllable margin x Sales Average operating assets Sales Average operating assets Comparative
Return on investment is often expressed as follows:
ROI | = | Controllable margin | = | Controllable margin | x | Sales |
Average operating assets | Sales | Average operating assets |
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, e.g. 152. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Return on investment is often expressed as follows: Controllable margin Controllable margin Sales ROI 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).) (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, 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 (a) $ Sales $1,584,000 $808,800 Net operating income (b) $ $190,080 $169,848 Average operating assets (c) $ $792,000 $5,020,000 Profit margin (d) % (e) % 0.5 % Assets turnover (f) (g) 3 Return on investment (h) % 2.1 % (i) % Residual income (i) $ (k) $ (0) $
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