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. Do not round your intermediate calculations.) Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual income $ $ $ Company A 350,000 $ 30,060 $ 167,000 18 % 15 % $ Company B 830,000 52,000 18 % 52,000 % Company C $ 560,000 $ $ 141,000 % 11 % 7,000
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. Do not round your intermediate calculations.) Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual income $ $ $ Company A 350,000 $ 30,060 $ 167,000 18 % 15 % $ Company B 830,000 52,000 18 % 52,000 % Company C $ 560,000 $ $ 141,000 % 11 % 7,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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. Do not round your intermediate
calculations.)
Sales
Net operating income
Average operating assets
Return on investment (ROI)
Minimum required rate of return:
Percentage
Dollar amount
Residual income
$
$
$
Company A
350,000
30,060
167,000
18 %
15 %
$
$
+A
$
Company B
830,000
52,000
18 %
52,000
%
$
$
LA
$
Company C
560,000
141,000
%
11 %
7,000
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Step 1: ROI,Residual Income and Minimum required rate of return
VIEWStep 2: Working note (Calculation of missing figure company A)
VIEWStep 3: Working note (Calculation of missing figure company B)
VIEWStep 4: (Calculation of missing figure company C:
VIEWStep 5: Fill in the missing figure:
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