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The following information is available on Company A: Sales - $900,000 Operating income - $36,000 Shareholder's equity - $ 100,000 Average operating assets - $180,000

The following information is available on Company A:

Sales - $900,000

Operating income - $36,000

Shareholder's equity - $ 100,000

Average operating assets - $180,000

Minimum required rate of return - 15%

  1. Compute the company's residual income, and return on investment.

Part b - The following information is available on Company B:

Sales$625,000

Gross Margin$70,000

Operating Income$50,000

Shareholders' Equity$90,000

Average Operating Assets$250,000

Residual Income$20,000

Compute the company's margin and turnover.

your final answers to 2 decimal points and show all work.

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