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Thank You ! A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry.
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A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Loss amounts should be indicated by a minus sign. Enter your ROI and Rate of Return Percentage answers to the nearest percentage (i.e., 0.12 should be entered as 12).) A Company B 740,000 41,000 $ 350,000 $ $ 690,000 $ $ $ 167,000 18 % 141,000 % 21% Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual income 15% % 12 % $ 44,000 $ 6,000 Required information (The following information applies to the questions displayed below.) Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year: Sales Net operating income Average operating assets $790,000 $ 18,960 $ 100,000 Required: 1. Compute the Springfield club's return on investment (ROI). (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (.e., 0.1234 should be entered as 12.34).) Margin Turnover ROI % Required information (The following information applies to the questions displayed below.) Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year: Sales Net operating income Average operating assets $790,000 $ 18,960 $ 100,000 2. Assume that the manager of the club is able to increase sales by $79,000 and that, as a result, net operating income increases by $6,241. Further assume that this is possible without any increase in operating assets. What would be the club's return on investment (ROI)? (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) % Margin Turnover ROI ! Required information (The following information applies to the questions displayed below. Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year: Sales $ 790,000 Net operating income $ 18,960 Average operating $100,000 assets 3. Assume that the manager of the club is able to reduce expenses by $3,160 without any change in sales or operating assets. What would be the club's return on investment (RON)? (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) % Margin Turnover ROI % Required information (The following information applies to the questions displayed below.) Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year: Sales Net operating income Average operating assets $790,000 $ 18,960 $ 100,000 4. Assume that the manager of the club is able to reduce operating assets by $50,000 without any change in sales or net operating income. What would be the club's return on investment (ROI)? (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) % Margin Turnover ROIStep by Step Solution
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