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The following data have been extracted from the year-end reports of two companies: Company X and Company Y: Required: 1. Determine the missing data on

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The following data have been extracted from the year-end reports of two companies: Company X and Company Y: Required: 1. Determine the missing data on the above table. 2. Explain the operating results of Company X and Company Y using the above data. 3. Would Return on Investment or Residual Income be the better method if you were comparing the results of Company X to Company Y ? Explain. 4. Why is Residual income a better measure to use to encourage management to make investment decisions? For this purpose assume that the minimum acceptable return for the companies above is 14% and both companies are presented with an investment opportunity that has an expected return of 14%

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