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: Company ACompany BCompany CSales$320,000 $820,000 $530,000 Net operating income $54,000 Average operating assets$170,000 $142,000 Return on investment (ROI)19%16% %Minimum required rate of return: Percentage12% %13%Dollar amount $50,000 Residual income $5,000

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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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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:

	Company A	Company B	Company C
Sales	$320,000		$820,000		$530,000
Net operating income			$54,000
Average operating assets	$170,000				$142,000
Return on investment (ROI)	19	%	16	%		%
Minimum required rate of return:
Percentage	12	%		%	13	%
Dollar amount			$50,000
Residual income					$5,000

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