Return on investment is often expressed as follows: Controllable margin Controllable margin Sales ROI == X Average operating assets Sales Average operating assets (b1) Comparative data on three companies operating in the same industry follow. The minimum required ROI is 10% for all three companies. Determine the missing amounts. (Round asset turnover of Company B and return on investment of Company C to 1 decimal place, e.g. 15.2 or 15.2% and all other answers to O decimal places, e.g. 152. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Company A Sales $1,560,000 Net operating income $187,200 Average operating assets Profit (d) (c) $ $780,000 % (e) margin Assets (f) turnover Return on investment (h) % Residual (j) $ (k) $ income Company B Company C $767,300 (a) $ (b) $ $161,133 % 2.1 % (i) (1) $ $4,637,000 0.6 % 4 %
Return on investment is often expressed as follows: Controllable margin Controllable margin Sales ROI == X Average operating assets Sales Average operating assets (b1) Comparative data on three companies operating in the same industry follow. The minimum required ROI is 10% for all three companies. Determine the missing amounts. (Round asset turnover of Company B and return on investment of Company C to 1 decimal place, e.g. 15.2 or 15.2% and all other answers to O decimal places, e.g. 152. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Company A Sales $1,560,000 Net operating income $187,200 Average operating assets Profit (d) (c) $ $780,000 % (e) margin Assets (f) turnover Return on investment (h) % Residual (j) $ (k) $ income Company B Company C $767,300 (a) $ (b) $ $161,133 % 2.1 % (i) (1) $ $4,637,000 0.6 % 4 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Return on investment is often expressed as follows:
Controllable margin
Controllable margin
Sales
ROI
==
X
Average operating assets
Sales
Average operating assets
(b1)
Comparative data on three companies operating in the same industry follow. The minimum required ROI is 10% for all three
companies. Determine the missing amounts. (Round asset turnover of Company B and return on investment of Company C to 1 decimal
place, e.g. 15.2 or 15.2% and all other answers to O decimal places, e.g. 152. Enter negative amounts using either a negative sign preceding the
number e.g. -45 or parentheses e.g. (45).)
Company A
Sales
$1,560,000
Net
operating
income
$187,200
Average
operating
assets
Profit
(d)
(c)
$
$780,000
% (e)
margin
Assets
(f)
turnover
Return on
investment
(h)
%
Residual
(j) $
(k) $
income
Company B
Company C
$767,300
(a) $
(b)
$
$161,133
%
2.1 % (i)
(1) $
$4,637,000
0.6 %
4
%
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