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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%
- 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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