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Thursday, 2 August 2012

A family friend has asked your help in analyzing the operations of three anonymous companies

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. Omit the "$" and "%" signs in your response.)

 
Company
  A B C
  Sales $400,000     $750,000      $600,000      
  Net operating income $ 32,000 correct     $45,000      $ 24,000 correct      
  Average operating assets $160,000     $ 250,000 correct      $150,000      
  Return on investment (ROI) 20%  18%   16 correct %   
  Minimum required rate of return:      
     Percentage 15%  20 correct %   12%   
     Dollar amount $ 24,000 correct     $50,000      $ 18,000 correct     
  Residual income $ 8,000 correct     $ -5,000 correct      $6,000  

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