A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sectorindustry. Supply the missing data in the table below: (Loss amounts should be indicated by a minus sign. Round your percentageanswers to nearest whole percent and other amounts to whole dollars.)CompanyABSales$420,000$710,000$570,000Net operating income$33,220$39,000Average operating assets$151,000145,000Return on investment (ROI)22 %15 %%Minimum required rate of return:Percentage12 %%13 %Dollar amount2$51,000Residual income$5,00024%24

Company ANet Operating income = Average operating assets * ROINet operating income…

Answered: 151,000 22 % eturn: 12 % %24 %24

Business

Accounting

151,000 22 % eturn: 12 % %24 %24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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
A
B
Sales
$
420,000
$
710,000
$
570,000
Net operating income
$
33,220
$
39,000
Average operating assets
$
151,000
145,000
Return on investment (ROI)
22 %
15 %
%
Minimum required rate of return:
Percentage
12 %
%
13 %
Dollar amount
2$
51,000
Residual income
$
5,000
24
%24

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