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Your Name Date Data Sales Net operating income Average operating assets Minimum required rate of return $25,000,000 $3,000,000 $10,000,000 25% Enter a formula into each
Your Name Date Data Sales Net operating income Average operating assets Minimum required rate of return $25,000,000 $3,000,000 $10,000,000 25% Enter a formula into each of the cells marked with a? below Review Problem: Return on Investment (ROl) and Residual Income Compute the ROI Margin Turnover ROI Compute the residual income Average operating assets Net operating income Minimum required return Residual income 0.25 Notes 1) Calculate ROl based on the Data above first. What is it? 2) Change the Average Operating Assets to $8,000,000 and comment below on the change in ROl with the lower operating assets Any change in Residual Income? 3) Now change Sales to $15,000,000 with other Data presented in Note 1 as shown above You may copy the formula and show the results Any change in Residual Income
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