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Verify that your worksheet matches the Review Problem in the text. Check your worksheet by changing the average operating assets in cell B6 to $9,000,000.
Verify that your worksheet matches the Review Problem in the text. Check your worksheet by changing the average operating assets in cell B6 to $9,000,000. The ROI should now be 33% and the residual income should now be $750,000. If you do not get these answers, find the errors in your worksheet and correct them. 3 Data 4 Sales $25,000,000 $3,000,000 $10,000,000 25% 5 Net operating income 6 Average operating assets Minimum required rate of return 9 Enter a formula into each of the cells marked with a? below 10 Review Problem: Return on Investment (ROI) and Residual Income 2 Compute the ROI 13 Margin 14 Turnover 15 ROI 16 17 Compute the residual income 18 Average operating assets 19 Net operating income 20 Minimum required return 21 Residual income 23 24
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