Problem
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.)
|
|
Company
|
|
|
A
|
B
|
C
|
|
Sales
|
460,000
|
$ 770,000
|
$ 700,000
|
|
Net operating income
|
|
43,000
|
|
|
Average operating assets
|
$ 157,000
|
|
$ 155,000
|
|
Return on investment (ROI)
|
22%
|
18%
|
|
|
Minimum required rate of return:
|
|
|
|
|
Percentage
|
17%
|
|
10%
|
|
Dollar amount
|
|
45,000
|
|
|
Residual income
|
|
|
7,000
|