A family friend has asked your help in analyzing the operations of three anonymo
ID: 2709610 • 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. Enter your ROI and Rate of Return Percentage answers to the nearest percentage (i.e., 0.12 should be entered as 12).)
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. Enter your ROI and Rate of Return Percentage answers to the nearest percentage (i.e., 0.12 should be entered as 12).)
Explanation / Answer
Company A calculation A B calculation B C calculation c Sales $390,000 $820,000 $520,000 Net operating income $33,180.00 =21% of average operating asset $40,000 $22,960 = Minimum required return in $ + residula income $ Average operating assets $158,000 $250,000 =40000/16% $158,000 Return on investment (ROI) 21 % 16 % 14.5% =22960/158000 Minimum required rate of return: Percentage 13 % 20% =51000/250000 12 % Dollar amount $20,540.00 $51,000 $18,960 Residual income $12,640.00 ($11,000) $4,000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.