Exercise 12-9 Return on Investment (ROI) and Residual Income Relations [LO12-1, LO12-2] 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 intermediate calculations. Round your answers to nearest whole number.) Company A B C Sales $310,000 $770,000 $670,000 N. Oper Inc. $45,000 Avg. Oper. Ass. $165,000 $141,000 ROI 18% 17% % Minimum required rate of return: Percentage 16% % 13% Dollar amount $43,000 Residual income $8,000
Exercise 12-9
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 intermediate calculations. Round your answers to nearest whole number.)
Company
A B C
Sales $310,000 $770,000 $670,000
N. Oper Inc. $45,000
Avg. Oper. Ass. $165,000 $141,000
ROI 18% 17% % Minimum required
Percentage 16% % 13%
Dollar amount $43,000
Residual income $8,000
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