A family friend has asked your help in analyzing the operations of three anonymo
ID: 2581939 • Letter: A
Question
A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Loss amounts should be indicated by a minus sign. Round your percentage answers to nearest whole percent and other amounts to whole dollars.) Company $ 830,000 $ 50,000 $370,000 $590,000 Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return $167,000 $148,000 22% 201% Percentage 141% 15% Dollar amount 45,000 Residual income 4,000Explanation / Answer
$36740
($167000*22/100)
$50000
$26200
($22200+$4000)
$167000
$250000
($50000*20/100)
$148000
22
20
17.70
($26200/$148000*100)
14
18
($45000/$250000*100)
15
$23380
($167000*14/100)
$45000
$22200
($148000*15/100)
$13360
($36740-$23380)
$5000
($50000-$45000)
$4000
A B c Sales $ 370000 $830000 590000 Net Operating Income
$36740
($167000*22/100)
$50000
$26200
($22200+$4000)
Average Operating Assets$167000
$250000
($50000*20/100)
$148000
Return on Investment (ROI)22
20
17.70
($26200/$148000*100)
Minimum Required Rate of Return Percentage14
18
($45000/$250000*100)
15
Dollar Amount$23380
($167000*14/100)
$45000
$22200
($148000*15/100)
Residual Income$13360
($36740-$23380)
$5000
($50000-$45000)
$4000
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